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After clicking the button a dialog for the new folder opens. Since folders do not have any attribute other than name and description, In the dialog that opens, you need to fill in the folder name and folder description. This will create a folder and immediately add it to the subcomponents list.
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Creation of
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Jira Project Components
You can create a real Jira project component from JIRA's own "Project Component" screen or directly inside the Subcomponents screen. To create a subcomponent inside the Subcomponents screen press the Create Component button next to the "Create Folder" button.
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