The TERMINAL statement can be used to associate specific attributes with a particular terminal in the system; the statement defines a terminal name regardless of the terminal type.
Like the SYSTEM statement, the TERMINAL statement is completely optional. If it is omitted, IBM Session Manager for z/OS would expect to associate characteristics with the user who signs on, rather than the terminal at which the sign-on is issued. In such a situation, USER statements should be defined instead of TERMINAL statements.