Two questions, two answers
The rail on the left of the Documents page answers two different questions, and it helps to keep them apart.
The four buckets say what a document is. Incoming is what somebody sent you, Outgoing is what you sent, Bank statements is what your bank produced, and Other is everything that is none of those. This is the classification the extraction works from, so a bank statement sitting in Incoming is not just untidy, it is being read as the wrong kind of document.
Folders say where it sits. They are yours, they nest, and nothing in the product reads meaning into their names. A folder is for you and for whoever you share the company with.
A document has both at once: it is in exactly one bucket and, if you put it there, in one folder.
Filing by dragging
Drag a document from the list onto a bucket and it is filed. The confirmation names the bucket back to you, so you can tell a mis-drop immediately.
Select several documents first and the whole selection travels together, which is the fast way to sort out a batch upload. The action bar that appears when something is selected has Move for the same job without dragging, and Create & Move if the folder you want does not exist yet.
Dragging a folder onto a bucket does nothing, and says so. A bucket is a property of a document, not a place that can hold a folder.
What happens when a folder goes
Deleting a folder does not delete what is in it. The documents move up to the parent folder and the confirmation says so.
That is deliberate: a folder is an opinion about arrangement, and you should be able to change your mind about the arrangement without risking the records. Deleting documents is a separate action with its own confirmation, and it moves them to the trash rather than removing them, so Restore is available afterwards. Delete Permanently is the one that does not come back.
Downloading a set
With documents selected, Download ZIP gives you the files as they were uploaded. For a year-end handover the export under Settings → Details → Data Export is usually the better tool, because it carries the extracted data alongside the files. See export your records for year-end.
Common questions
Can I nest folders? Yes. Drag a folder onto another folder to move it. A folder cannot be moved into its own subtree, and the app refuses that rather than tangling the tree.
Does the AI use my folder names? No. Extraction reads the document, and the bucket is what carries meaning to the rest of the product. Folders are for you.
I dropped something in the wrong bucket. Drag it to the right one. Nothing is lost by re-filing, and the extraction picks up the corrected classification.
Nothing moves when I drag. If a banner says changes are paused on your account, filing is read-only for the moment; that is a billing state rather than a bug. See switch or cancel your plan.
Where is this on my phone? The four buckets are in the mobile app too, on the documents screen. Folder management is a web job for now.