The Directory can be created and edited in Salesforce. However, it is strongly recommended that all Directories be created through the Builder due to complications that can arise with specific configurations.
From the App launcher, select Directories.
From the Directories page, click the New button. The Create New Directory modal will open.
Select the Primary Object of your Directory, and create a Display Name. The Directory Builder will now open, and by default you will be taken to the Display tab of the Builder.
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