Wherein paperwork is sorted by folders (7)
I believe the answer is:
origami
If this is the answer I cannot explain how the clue works.
Can you help me to learn more?
(Other definitions for origami that I've seen before include "Creation of objects from paper" , "Delicate operations" , "I'm a giro (anag)" , "Oriental art of paper folding" , "Japanese craft of paper-tearing" .)