Organizing Documents Spreadsheets, etc. - What Makes Sense? Nonsense?

I've got to organize a document repository which will contain network diagrams, manuals, Application documentation, application diagrams.
I'm looking for a common-sense way to organize the data.  
Create Location folders? (Cresskill, Trenton, Newark?)  and place functional files in them?
Or
functional folders (Finance, Sales, HR) and then have the location specific documents within the functional folders.
Surely someone has written an terse article on this?
brothertruffle880Asked:
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Jerry MillerConnect With a Mentor Commented:
I prefer to sort things per project and have individual folders within the project. This way I know that everything for a particular project SHOULD be in this folder.

If you think of the folder structure as a file cabinet, how would you organize them in physical file drawers?

So for yours, I would do it by location then have the functional files (Finance, Sales, HR)separated within each location. But it is purely what makes sense to you or whoever will be using the folders. If you aren't the primary user, I would get with that group and see how they would organize things.
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