Yes, it can be written with or without the S. Without the S, the value MUST be zero or positive; with the S, the value can be zero or positive or negative. The internal representation of the sign does not require another byte for USAGE DISPLAY data.
You need to spend some time in the Enterprise COBOL
Programming Guide manual
http://publibfp.boulder.ibm.com/epubs/pdf/igy6pg10.pdf and pay particular attention to page 53 of the V6.1 manual, which is a table titled
Examples: numeric data and internal representation .