Content

I. Purpose
II. Scope
III. Guidelines

Purpose:
This file classification scheme is for the Village Motor Traders department; it has been developed by the
IT department to provide a detailed framework for the management of all company-wide records. These
records can be found in the office and these scheme where designed for easy tracking of files by having
file list and segregated filing storage of company documents.
Scope:
I. To be used by all departments and VMT branches.
II. It is designed for both paper and electronic management systems.
III. This classification system can be adjusted to meet the company’s specific needs.

Guidelines:
A. Benefits
 This enables the standardization of the arrangement and titling of folders and records.
 It enables the department to organize the record that they create and receive in a
standard way.
 Enables the department to retrieve by navigating to the hierarchy of departments,
functions, activities and dates.
 Enables the department a monitored record which are timely for transfer, destruction
and archiving.
B. Structure
It is hierarchical filing system comprised of three or four levels. The first up to third levels have
been defined. The First level, cannot be changed, however, departments may need to adjust the second
and third levels as need:
First Level: Departments
Each filing code must begin with four (4) letter abbreviation, which collectively represents the
departments of the company.
ABBREVIATION TITLE

ACCT Accounting Department

LTOD LTO Department

HRMD Human Resource Department

ADMD Admin Department

 Second Level: Functions
The second level correspond the function of the every department. The number is sequentially
assigned to the function unique to a department.
Human Resource
Accounting Department LTO Department Administration Department
Department

01 Banking 01 OR / CR 01 Employee Files 01

Recruitment and
02 Account Receivables 02 02 Hiring
02

Staff Development
03 Account Payables 03 03 (Training)
03

04 Payroll 04 04 Job Evaluation 04

Performance
05 Permit & Licenses 05 Management

06 Fixed Assets 06 Labor Relation

Compensation and
07 Disbursement 07 Benefits

(Note: Some function is blank; these functions must be declared by the department themselves)
Third Level: Activities
This level corresponds to the department activities. The numbers are also sequentially assigned
to the activities unique to a function.

Banking Account Receivables

BG001 Deposit Slip
AR001 Ledger
BG002 Ledger
AR002 Receipt

AR003 Collection Report

For Example:
Account Receivable – Ledger – Active Accounts – Area –
ACCT – 02 – AR001 – Active – KALIBO

Fourth Level: Sub Activities

This level is optional; it corresponds to the sub activities of an activity. Department may choose
to subdivide their activities for record keeping purpose.
For Example:
Account Receivable – Ledger – Active Accounts – Area – Repossess –
ACCT – 02 – AR001 –Active– KALIBO – Repossess
 ACCT – 02 – AR001 – KALIBO – 1st owner

C. Scope Note and Folder Title Guidance

The file classification system includes scope notes that define the type of records that fall under
the specific activities or sub-activities. This information can be adjusted by the department as needed. In
addition, basic instructions for creating folder titles are provided; however, department may wish to
establish further naming conventions for their file folders.

D. Using the File system scheme

File Folder Number and Titles
Each file folder opened by a department should be assigned and labeled with a unique number
which identifies it. This done by combining the appropriate File system code (e.g. ACCT – 01) with a
chronologically assigned number for the specific folder (e.g. AR003). This combined number is called the
file folder number. This file folder number is unique within the office’s record-keeping system.
For example, a department may need to open a file folder for the records related to the Account
receivable 2015-2016. Accordingly, it would create a folder labelled as follows:
File folder number: ACCT-01-AR003
File folder title: ACCOUNTING – ACCOUNT RECEIVABLE – COLLECTION REPORT – VMT MAIN 2015 to
2016