Error attempting to create new PowerPivot Gallery Document from PowerPivot gallery

With SharePoint 2010, you might run into an issue when attempting to create a new PowerPivot Gallery Document from PowerPivot gallery, like this:

 If you encounter this issue, you may then see the following to errors:

The reason for the error is that SharePoint is looking for the template .xlsx file in the wrong location.

To resolve the issue:

1. Navigate in SharePoint to your PowerPivot gallery
2. Click on the Library menu at the top (like below)
3. Click on the Open with Explorer icon (like below)
4. Move the Forms folder that is located there into the ReportGallery folder, or if the Forms folder does not exist, create a Forms folder in the ReportGallery folder (like below)

Now the path to the template.xlsx folder will be correct, and you shouldn’t get any errors when creating new PowerPivot Gallery Documents from PowerPivot gallery.