When you create a Quality project and specify the input data, a flat file of the data is created. When you regenerate a dynamic entity in a Quality project, the flat file associated with the entity is deleted and a new one is created for the regenerated data.
Note the following guidelines:
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If you connect a dynamic entity to the full data set of the source, then the flat file will be larger than if you regenerated using a sample of the data. Therefore, regenerate with a sample of data if disk space is a consideration and you need to keep flat files smaller.
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When you create a project or regenerate the data, a Background Tasks activity called TSQ flat file conversation runs.