This article minutely examines functional appraisal process that focuses on not content but function in which the records are created. Taking everything into consideration, functional appraisal in electronic record environments constitutes consecutive process that is performed organically in pre-creation stage of records. Ultimately functional appraisal in electronic record environments is organic process selecting electronic records across phases of whole record management, which assure business context and recordness, and need to run organization and perform business.