Select this option to prevent folders based on this Folder Type from being auto-created when the parent folder is created. This option applies only if the Folder Type's parent is configured to auto-create child folders.
For example, suppose you have an Employee Documents Folder Type that is configured to auto-create its child folders. The Employee Documents Folder Type may have a Separated child Folder Type to contain employee separation documents. A Separated folder should reside in an employee's Employee Documents folder only if the employee has left the company.
If you wanted all child folders within the Employee Documents Folder Type to be auto-created except for Separated, you would apply the Do Not Auto-Create This Folder option to the Separated Folder Type.