Help with deleting a record

I have an application where I read a record, perform some calculations, and then decide whether I want to delete the record or save (“rewrite”) it.  The compiler gives me an error, apparently inconsistent with the MicroFocus documentation.   Please advise how I can achieve my purpose.

In Micro Focus Online Documentation the rules for Deleting a record state:

1. The associated file must be open in the I-O mode at the time of execution of this statement. (See the topic The OPEN Statement.)
2. For files in sequential access mode, the last input-output statement executed for file-name-1 prior to the execution of the DELETE statement must have been a successfully executed READ statement. The operating system logically removes from the file the record that was accessed by that READ statement.

Here is my code:

         SELECT CLEANDATA

             ASSIGN TO "CLEANDATA"

             ORGANIZATION IS SEQUENTIAL

             ACCESS IS SEQUENTIAL.

. . .

       FD  CLEANDATA

           LABEL RECORDS ARE STANDARD.

       01  CLEANDATA-REC.

           05  CLEANDATA-FIELD  OCCURS 4000 PIC S9(12).

. . .

           open I-O    CLEANDATA.

. . .

           read CLEANDATA next

               at end go to 1000-EXIT.

           MOVE 'N' TO W-DELETE-CLEANDATA-FLAG.

           perform 2000-SCAN-FOR-ERRORS.

           if W-DELETE-CLEANDATA-FLAG = 'Y'

                DELETE CLEANDATA RECORD      ==>  Compiler barfs “Not allowed with SEQUENTIAL files”

           else rewrite CLEANDATA-REC.

           go to 1000-ENTRY.

I will be most grateful for your advice.