anything you create in Bodyshop gets saved in the Saved Sims folder.
This is correct - so that includes any skins you make in Bodyshop as well as sims. If you are a skinner, you can't work without this folder.
And Rainbow, you could always put skins in Downloads right from the beginning - we only put skins in Saved Sims before NL because we couldn't sub-folder them then and so it was a convenient place to keep them separate from all other downloads.
I use Saved Sims as a sort of sorting station - I put clothes I want to test out in there and also sometimes objects. The game will not read skins or sims files in SUB-FOLDERS in that location so I store sims files in there in sub-folders of sims I want to keep but I don't want the game to load up everytime I play. I do a similar thing with skin project files which are only partially completed (when I'm making meshes). The game will read any other sort of file in there whether they're in sub-folders or not so it's also a good place to put objects and/or hacks you want to test if you want to keep the files separate.