Description of the topic local_directory_structure.png
The illustration shows the tree structure of the directories and files that nust be created on your local system before you can execute the Terraform script.
At the top is the root path. Indented below it are three subfolders: compartments, iam and vcn. The compartments item contains three files: compartments.tf, compartments_output.tf, and variables.tf. The iam item contains four files: groups.tf, iam_outputs.tf, policies.tf and variables.tf. The vcn item contains three files: variables.tf, vcn.tf, and vcn_output.tf.
Below all of these items are the five files that are created in the root directory: datasources.tf, provider.tf, root.tf, terraform.tvars and variables.tf.
More information on the purpose of the folders and files is in the text that follows.