cobol2.hlp (Table of Contents; Topic list)
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OSEXT Details (↑ Compiler Control)
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     The extension is added if the source file-name used in the command
     or prompt does not have an extension or a trailing period. This
     happens only if the directive is specified in COBOL.DIR.
 
     It is also used if you specify a source file-name with no
     extension or trailing period in a COPY statement. The compiler
     searches first for the file with the name given by adding the
     extension specified in this directive. If none is found, it adds
     the extension .CPY and looks again. If that is not found it
     searches for the file with no extension.
 
     See also COPYEXT
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