You can allocate both stream and record files to the terminal. However, no prompting is provided for record files. If you allocate more than one file to the terminal, and one or more of them is a record file, the output of the files will not necessarily be synchronized. The order in which data is transmitted to and from the terminal is not guaranteed to be the same order in which the corresponding PL/I I/O statements are executed.
Also, record file input from the terminal is received in upper case letters because of a TCAM restriction. To avoid problems you should use stream files wherever possible.