diff --git a/paperless.conf.example b/paperless.conf.example
index 8f586e601..ff96bfe20 100644
--- a/paperless.conf.example
+++ b/paperless.conf.example
@@ -54,7 +54,7 @@ PAPERLESS_CONSUME_MAIL_PASS=""
 # ignored.
 PAPERLESS_EMAIL_SECRET=""
 
-# Specify a filename format for an (optional) subdirectory and the document itself
+# Specify a filename format for the document (directories are supported)
 # Use the following placeholders:
 # * {correspondent}
 # * {title}
@@ -63,7 +63,6 @@ PAPERLESS_EMAIL_SECRET=""
 # * {tags[FILTER]}
 # Uniqueness of filenames is ensured, as an incrementing counter is attached
 # to each filename.
-#PAPERLESS_DIRECTORY_FORMAT=""
 #PAPERLESS_FILENAME_FORMAT=""
 
 ###############################################################################
diff --git a/src/documents/models.py b/src/documents/models.py
index 58206ba11..25caddebf 100644
--- a/src/documents/models.py
+++ b/src/documents/models.py
@@ -299,31 +299,17 @@ class Document(models.Model):
         return mydictionary
 
     def generate_source_filename(self):
-        # Create directory name based on configured format
-        if settings.PAPERLESS_DIRECTORY_FORMAT is not None:
-            directory = settings.PAPERLESS_DIRECTORY_FORMAT.format(
-                        correspondent=slugify(self.correspondent),
-                        title=slugify(self.title),
-                        created=slugify(self.created),
-                        added=slugify(self.added),
-                        tags=defaultdict(str,
-                                         self.many_to_dictionary(self.tags)))
-        else:
-            directory = ""
-
         # Create filename based on configured format
         if settings.PAPERLESS_FILENAME_FORMAT is not None:
-            filename = settings.PAPERLESS_FILENAME_FORMAT.format(
-                        correspondent=slugify(self.correspondent),
-                        title=slugify(self.title),
-                        created=slugify(self.created),
-                        added=slugify(self.added),
-                        tags=defaultdict(str,
-                                         self.many_to_dictionary(self.tags)))
+            path = settings.PAPERLESS_FILENAME_FORMAT.format(
+                   correspondent=slugify(self.correspondent),
+                   title=slugify(self.title),
+                   created=slugify(self.created),
+                   added=slugify(self.added),
+                   tags=defaultdict(str,
+                                    self.many_to_dictionary(self.tags)))
         else:
-            filename = ""
-
-        path = os.path.join(directory, filename)
+            path = ""
 
         # Always append the primary key to guarantee uniqueness of filename
         if len(path) > 0:
diff --git a/src/documents/tests/test_file_handling.py b/src/documents/tests/test_file_handling.py
index 46f5bbc9d..30dc8fd81 100644
--- a/src/documents/tests/test_file_handling.py
+++ b/src/documents/tests/test_file_handling.py
@@ -14,7 +14,6 @@ from django.conf import settings
 
 
 class TestDate(TestCase):
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT="")
     @override_settings(PAPERLESS_FILENAME_FORMAT="")
     def test_source_filename(self):
         document = Document()
@@ -27,7 +26,6 @@ class TestDate(TestCase):
         document.filename = "test.pdf"
         self.assertEqual(document.source_filename, "test.pdf")
 
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT="")
     @override_settings(PAPERLESS_FILENAME_FORMAT="")
     def test_generate_source_filename(self):
         document = Document()
@@ -43,8 +41,7 @@ class TestDate(TestCase):
 
     @override_settings(MEDIA_ROOT="/tmp/paperless-tests-{}".
                        format(str(uuid4())[:8]))
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT="{correspondent}")
-    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}")
+    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}/{correspondent}")
     def test_file_renaming(self):
         document = Document()
         document.file_type = "pdf"
@@ -89,8 +86,7 @@ class TestDate(TestCase):
 
     @override_settings(MEDIA_ROOT="/tmp/paperless-tests-{}".
                        format(str(uuid4())[:8]))
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT="{correspondent}")
-    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}")
+    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}/{correspondent}")
     def test_document_delete(self):
         document = Document()
         document.file_type = "pdf"
@@ -113,8 +109,7 @@ class TestDate(TestCase):
 
     @override_settings(MEDIA_ROOT="/tmp/paperless-tests-{}".
                        format(str(uuid4())[:8]))
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT="{correspondent}")
-    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}")
+    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}/{correspondent}")
     def test_directory_not_empty(self):
         document = Document()
         document.file_type = "pdf"
@@ -148,8 +143,7 @@ class TestDate(TestCase):
 
     @override_settings(MEDIA_ROOT="/tmp/paperless-tests-{}".
                        format(str(uuid4())[:8]))
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT="{correspondent}/{correspondent}")
-    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}")
+    @override_settings(PAPERLESS_FILENAME_FORMAT="{correspondent}/{correspondent}/{correspondent}")
     def test_nested_directory_cleanup(self):
         document = Document()
         document.file_type = "pdf"
@@ -178,7 +172,6 @@ class TestDate(TestCase):
 
     @override_settings(MEDIA_ROOT="/tmp/paperless-tests-{}".
                        format(str(uuid4())[:8]))
-    @override_settings(PAPERLESS_DIRECTORY_FORMAT=None)
     @override_settings(PAPERLESS_FILENAME_FORMAT=None)
     def test_format_none(self):
         document = Document()
diff --git a/src/paperless/settings.py b/src/paperless/settings.py
index 4a7317e02..3cadc7d2b 100644
--- a/src/paperless/settings.py
+++ b/src/paperless/settings.py
@@ -336,5 +336,4 @@ PAPERLESS_RECENT_CORRESPONDENT_YEARS = int(os.getenv(
     "PAPERLESS_RECENT_CORRESPONDENT_YEARS", 0))
 
 # Specify the filename format for out files
-PAPERLESS_DIRECTORY_FORMAT = os.getenv("PAPERLESS_DIRECTORY_FORMAT")
 PAPERLESS_FILENAME_FORMAT = os.getenv("PAPERLESS_FILENAME_FORMAT")