​1.  Select an Artifacts library for the new folder

2.   From the "Team Documents" Library, click on the "Library" Tab.

3.   Select "Library Settings" from the ribbon.

4.   Once you're in the Library Settings page, scroll down to the "Columns" section and click the column name Folder1 (or SubFolder) item.

5.   Once you're in the Folder settings page, scroll down to the "Type each choice on a separate line" section.  Edit that list with your preferred folder names by typing in folder name(s) in the box, (put a return between each item).   > click Ok

6.  Return to the Artifacts library main view.

7.  Upload new documents, in the folder fields, select a folder for each document and the folders will begin to appear.   For already uploaded documents, click the ellipses icon  for "Edit Properties", and then update the folder fields accordingly.
                           In the drop-down menu next to the folder column, select the folder name you created.  If a desired folder name does not exist, you can add a folder name for one-time use in the box under Specify your own value > click Save:

8.  Finished.