This is a quick walk though of what to look for in the setup of document handling if you try to attach a document to a record in AX but get the message “Archive directory not found”.
This video was recorded in AX2012 R2 but this applies to any release of as the document handling concepts haven’t changed much up until the release of Ax2012 R2 when additional supported as added for SharePoint document libraries. I did a post a while back that gives an example of the SharePoint setup
https://organicax.com/2014/09/10/sharepoint-document-library-with-document-handling/
Cheers
Lachlan