--TESTCD variables were designed to be utilize as source of names for new variables during data transposing from vertical structure to horizontal. Therefore values of --TESTCD and --TEST variable are expected to follow conventions for variable names and labels in SAS XPORT format.
Also according SEND IG 3.0 #4.3.2 on page 25:
"CONTROLLED TERMINOLOGY TEXT CASE
It is recommended that controlled terminology be submitted in upper-case text for all cases other than those described as exceptions below. When extending a controlled terminology list, the case-sensitivity convention of that list should be followed.
Deviations to these rules should be described in the data definition file.
A warning SD0018 "Invalid value for CLTESTCD variable" seems to be thrown when CLTESTCD is not upper case.
There is no rule in the SENDIG which requires that entries in this variable be in uppercase text, and CLTESTCD does not use controlled terminology. It seems perhaps that this rule has somehow been assumed based on controlled terminology in other domain TESTCD entries.
If there is a source for this rule, please provide this as a reference, otherwise I think this is not a valid check.