the process of moving an active file to inactive status is called

In many business environments, effectively managing files is crucial. One part of this is knowing what to do when information is no longer needed for day-to-day work. The process of moving an active file to inactive status is called file inactivation, or more specifically, records disposition. This is a common step in records management, and understanding it helps reduce clutter, improve efficiency, and support compliance.

What Is File Inactivation?

File inactivation refers to the practice of shifting files from “active” (used regularly for current activities) to “inactive” (no longer needed for frequent reference, but still must be retained for legal, business, or historical reasons). Think of invoices from a previous fiscal year or completed employee files—these aren’t needed daily, but can’t be thrown out yet.

Knowing when and how to inactivate files is important in offices, hospitals, law firms, schools, and nearly any setting where records are kept.

How the Process Works

The process of moving an active file to inactive status is called inactivation, but it generally includes several steps:

1. Review
   Regularly check files to determine if they are still active. This usually happens at set intervals, like year-end or the close of a project.

2. Criteria for Inactivation
   Files might become inactive after a project ends, a customer account is closed, or the information has met its retention requirements for daily operations.

3. Reclassification
   Once a file is identified as inactive, its status is updated in the filing system—whether that's a digital document management platform or a physical filing cabinet.

4. Physical or Digital Transfer
   Inactive files are moved to a separate location—either an archive box, offsite storage, or into a digital “inactive” folder.

5. Documentation
   A record is usually kept of all inactivated files so they can be retrieved if needed during audits or legal reviews.

6. Retention and Disposal Schedule
   Inactivated files are retained for a specific period, based on laws or company policy, before being permanently destroyed or archived.

Why Bother With Inactivation?

Keeping all files active leads to overstuffed cabinets, overwhelmed digital systems, and wasted time searching for documents. Inactivating files declutters workflow and limits risk—especially the risk of unauthorized access to sensitive old records. For regulated industries, following proper records disposition is required to avoid penalties.

Pros and Cons

Pros:

• Frees up storage space
• Makes active records easier to find
• Supports compliance and risk management
• Reduces administrative burden

Cons:

• Requires periodic reviews and staff time
• Poor tracking can lead to lost or misfiled records if the process isn’t clear
• Digital inactivation needs reliable labeling and access controls

Tips for Effective Inactivation

• Set a regular schedule for file reviews.
• Use a clear, consistent labeling system.
• Train staff on retention and inactivation policies.
• For digital records, ensure your management software supports archiving and retrieval.

Final Thought

The process of moving an active file to inactive status is called inactivation or records disposition, and it’s a routine part of good records management. By understanding and applying this process, organizations maintain efficient operations, comply with regulations, and make the most of their storage—without losing track of important information.