File cabinets are the highest level in the folder structure. All folders must reside in a file cabinet.
File cabinets are considered top-level folders and must be based on a Folder Type. Name the Folder Type and the file cabinet in a way that clearly reflects their 1:1 relationship (i.e., that the file cabinet is based on the Folder Type).
There are two ways to configure a file cabinet and its Folder Type:
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Simultaneously through the Folder Type configuration dialog box (Document | Folder Types). See Creating Both a File Cabinet and its Folder Type for details
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Separately by first configuring the Folder Type for the file cabinet (Document | Folder Types), and then configuring the file cabinet (Document |File Cabinets). See Configuring Only the Folder Type for a File Cabinet and Creating a File Cabinet Only.