Folders: Allow Customization profile option

Today I learned something from our team about the profile option "Folders: Allow Customization" from an unusual situation!  A/P reported that they were not able to sort their Invoice Workbench in responsibilities for one organization, as they were with responsibilities in another organization, so I thought this was going to be fairly easy and straightforward but the more I looked everything seemed okay.  The same folders were created and assigned to responsibilities being used in BOTH organizations, and even to some users which weren't able to sort them either, so I was stumped.  Our project team had the solution that the profile option value for "Folders: Allow Customization" needed to be set to Yes at the responsibility level for all of the responsibilities that the users needed to use because we have "Folders: Allow Customization" set to No at the Site level so it didn't matter what the folder assignments were!