In SharePoint Online, for a list or document library, it is possible to define default metadata values based on the folder where an item or document is added.
As with a lot of cases in SharePoint, the defaults are set on subfolders with inheritance. On every folder-level it is possible to break the inheritance and define other default values for your metadata.
In the example below we work with a Managed Metadata field, called customer, we need to default. This way our co-workers don’t need to specify the value everytime they create or upload a document to the document library.
There are two ways to make the magic happen. Through the user interface, and with Powershell.