Use the defining criterion that a flat module makes injective for every injective module homomorphism . By right exactness of the tensor product, preserving injections is equivalent to preserving every short exact sequence.
First assume is flat over , and fix a maximal ideal . Let be an injection of -modules. Regard it as an injection of -modules. There are natural module isomorphisms
For example, maps to , with inverse . These are well-defined because every already acts invertibly on . Under these isomorphisms the tensor map is , which is injective by flatness. Thus is flat over .
For the converse, assume every is flat over and take any injection of -modules. By part (c), each is injective. Since localization commutes with tensor products, the localization of identifies with
It is injective by the assumed local flatness. Apply part (c) again, now to , to conclude that it is injective globally. Since was arbitrary, is flat. Therefore
This proves flatness is local without any finite-generation hypothesis.
The degree-one generation condition for Proj ensures that the opens for cover . Put and . Multiplication by is an -linear bijection for every integer , because is an invertible degree-one element. The convention therefore identifies on this chart with the free rank-one -module , generated by . Hence every twisting sheaf is invertible, including negative twists.
For the tensor product of sheaves, consider the natural map
It is an isomorphism by degree-one localization of a graded module. Explicitly, a homogeneous tensor of total degree zero is represented on the left by . Multiplying a tensor factor by a homogeneous element of gives the same result after using the tensor relation, since that element is a degree-zero coefficient times a power of . This defines the inverse. Since localization commutes with tensor products, the target is . These natural chart maps agree on overlaps, so
The degree-one hypothesis matters: on general Proj constructions, twisting sheaves need not be line bundles. The local trivializations are also recorded in Stacks Project, Section 27.10.
Under the degree-one generation condition for Proj, cover by degree-one charts. The degree-one localization of a graded module identifies the two local modules in the displayed formula, using localization commutes with tensor products. The maps are natural and agree on overlaps, so they glue to an isomorphism of sheaves of modules. The analogous assertion can fail for general positively graded rings.