An item can only belong to one folder or sub-folder.
Add items to folders in the web-app
Select 'Inventory' from the left hand menu
Search your inventory for the item you want to add to a folder
Click the three dots to the right of the item
Select "Move to folder"
Choose the folder and select "Move". You will be prompted to confirm that you want to move the item. Verify the folder you are moving the item to, and select "Move".
Add items to folders with the mobile app
Tap ‘Inventory’ on the bottom menu of the mobile app
Use the search bar to search your inventory for the item you want to add to a folder
Tap on the item to view its information
Tap 'Options'
Tap 'Move to folder'
Choose the folder and tap "Move". You will be prompted to confirm that you want to move the item. Verify the folder you are moving the item to, and tap "Move".