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When in Prepare tab, click on + beneath folders list to open menu of additional actions -- pick Add/Edit Folders to add new or preexisting folders to the list and click on Submit. After that, you'll have to manually drag fields into folders you wish them to reside in (dragging won't be allowed if fields are already being used in any reports based on that view).
You can remove extraneous folders once they are emptied using the sam Add/Edit Folders action (hover over folder name and an X will appear).
P. S. If you later decide to add fields to a view, you'll have to repeat this procedure for newly added fields.
This is what I thought, but for some reason the view I am trying to edit just clocks when I click Prepare.
I appreciate your help.