Application encoding scheme
The application encoding scheme is the CCSID that your application uses to interpret data in host variables. For Db2 for z/OS® applications, typically the application encoding scheme is the value of the ENCODING bind option. (By default this value is the subsystem default application encoding scheme.)
However, you can also set the CCSID of application data by using the DECLARE VARIABLE statement with the CCSID option or the CURRENT APPLICATION ENCODING SCHEME special register. If you are using the Db2 coprocessor, you can use various language compiler options to override the Db2 application encoding scheme for an application. For detailed instructions on how to set the application encoding scheme, see Specifying a CCSID for your application.
Db2 automatically converts any data that you select to the application encoding scheme. For example, if you use SPUFI to select catalog data (which is in CCSID 1208), Db2 converts the data to the application CCSID of SPUFI. Your version of SPUFI should be bound with a CCSID that matches the CCSID of your terminal emulator. (By default, SPUFI is bound with CCSID 37. However, you can bind different versions of SPUFI with different CCSIDs.) Assume that you are following this good practice of having your SPUFI CCSID match your terminal emulator CCSID. In this case, any character in the selected data that does not exist in the CCSID of your terminal emulator is not displayed correctly. For example, if SPUFI and your terminal emulator are set to CCSID 37, the Euro symbol (€) can not be displayed.