Under this method of filing, each correspondence is given a specified number. Then, the papers are placed in a strict numerical order. For example, Number 100 may be allotted to Fernandez, all the papers relating to him is placed in file No: 100. Like wise, number 101 may be allotted to Pelister. In this way the numerical classification is done.
Generally transport authorities are following the numerical classification while assigning registration numbers to motor vehicles.
Types of Numerical Filing
There are three types of numerical filing. They are
1. Consecutive Classification: Folders or files are arranged in a strict order from 1 onward. Each folder is numbered according to either subject or name and placed at the near to the existing folders.
2. Dewey Decimal System: This type of classification is used in libraries. Each digit stands for one classification. For example 123.456 stands for sociology (1), commerce (2), Accounts (3), Decimal relates to Management Accounting (4), Accounts for Decision Making (5), Capital Budgeting (6).
3. Terminal Digit System: This type of classification is carried on to expedite reference and to facilitate the transfer of old records. Under this system, the first terminal digit is taken to be the digit in unit place, the second terminal digit in the tens place and so on. Thus, all the files with the same last two digits are filed together; then the files with the preceding two digits and so on. For example
Under — 01:01, 101, 201, 301, etc.
Under — 02:02, 102, 202, 302, etc.
Under — 03:03, 103, 203, 303, etc.
This type of classification is highly suitable for the filing of sales invoices, orders and the like.
Advantages of Numerical filing
The advantages of numerical classification are as follows:
1. It is easy to understand
2. Disarrangement of files is minimized.
3. The location of numbered files is very easy.
4. The file number can be used as a reference in future correspondence.
5. The expansion of files is very easy since the system is flexible.
6. The preparation of address list is very easy.
7. It reveals certain useful information like the total number of customers, orders and the like.
Disadvantages of numerical filing
The disadvantages of numerical filing are given below.
1. It requires much time in referring to the index and locating the specified file.
2. This system is costly. The reason is that there is a need of separate index for them.
3. There may be mental transpositions of figures. For example, one can read 450 instead of 415 which results in errors.
4. It is very difficult to arrange the files of miscellaneous papers.