In an APPC environment, when a user or application on one system requests access to another system, the two systems set up a session. To establish the session, the systems must link two matching APPC device descriptions.
The remote location name (RMTLOCNAME) parameter in the SYSTEMA device description must match the local location name (LCLLOCNAME) parameter in the SYSTEMB device description and vice versa. For the two systems to establish an APPC session, the location passwords in the APPC device descriptions on SYSTEMA and SYSTEMB must be identical. Both must specify *NONE, or both must specify the same value.
If the passwords are a value other than *NONE, they are stored and transmitted in encrypted format. If the passwords match, the systems establish a session. If the passwords do not match, the user’s request is rejected.