transcode = proxy. They are one in the same. When you tell Premiere to create a proxy file you are telling it to create a transcode of your master file.
Just make sure your proxy audio settings match your master file audio- i.e., if you have 4 channels of audio on your master file you must have four channels of audio on your proxy file. If the audio channels don’t match, you won’t be able to switch back to the master files after you’re done working with the proxies.
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– Orson Welles