1. Open your course and go to the Course Admin.

2. Under Learner Management, click Groups

3. Create a New Category - the category is like the folder that the groups will live in. 

4. Add a name for your Category and, optionally, a description.

5. Under Enrollment Type, select the type of enrollment you would like for the group - auto-enrollment, self-enrollment or manual enrollment are all options here

6. Once you have configured the groups to your liking, click Save.

Adding Groups to an Assignment

1. Open the Course Admin Tool, 

2. Under Assessment, open Assignments

3. Select the Assignment you would like to add groups to or click New Assignment

4. Under the Submission & Completion Settings > Assignment Type, select Group Assignment

5. Select the group category that you would like associated with this assignment. 

6. Once you have the assignment settings configured click Save and Close.