Hi Luar,
The exception clearly states that the folder does not exist. Note the folder needs to exist before you create the document and expect to save it in the folder. Consider the OIR entry as shown below :
'Default' needs to exist and the folder ABC is the folder in which I need to store the documents. It is the first level folder.
<AttrValue id="folder.id" algorithm="com.ptc.core.foundation.folder.server.impl.FolderPathAttributeAlgorithm">
<Arg>/Default/ABC</Arg>
</AttrValue>
-Malavika