When you publish your package containing folders, the folders are visible to the report authors but unlike namespaces, they are not prefixed to the reporting items.
Unlike namespaces, the folder names are also not prefixed to the items within the folder.
The folders are also created in a similar way to the namespaces:
Select the location where the folder is to be created.
Right-click on the Options menu and select Create | Folder.
Alternatively, from the menu select Create | Folder.
Give your folder a name to replace the default name. All folder names must be unique within a namespace.
You can select and move the objects into the folder, or alternatively click on the Finish button to confirm the folder creation.
After creating your folder, you can drag-and-drop other objects into it.