This is often essential for maintaining sales records or customers; accounts. Thus files may be classified by names of States in alphabetic order. Within each group of State files there may be a sub division of file by larger cities. The customers' name may then be arranged alphabetically in the sub-division of each city. For example, files may be classified in the order Andhra Pradesh, Assam, Bihar, etc. Within each sub-division names of correspondents may be arranged alphabetically.

In geographical filing, the folders are geographically titled to indicate the territory concerned and the papers are arranged within the folder in alphabetical order. The papers of regular correspondents in the territory are given individual folders which are filed by name or subject. When letters are received from more than one casual correspondent in a territory then a miscellaneous folder is provided for that territory. If more than one miscellaneous folder is required within a territory, an alphabetical sub-reference is provided to each miscellaneous folder to break up the correspondence into manageable sections. Where only very infrequent correspondence is received from a territory and it does not warrant a separate folder, the correspondence is placed in a miscellaneous folder, the folder being filed alphabetically. A series of such folders may thus be provided throughout the system.