The Auto-create feature on Freshsales allows users to create leads/contacts every time a new email address enters the system.
How does this work?
The auto-create lead/contact option works only under one of the following circumstances:

• When a new email address is part of the to address, the Cc or the Bcc in an incoming/ outgoing email.
  

• When a new email address is added as attendee to an appointment.
  

Note: This, however, is different from the automatic lead generation functionality that can be carried out using sales email forwarding to a common team inbox.

When should I check this option?

The auto-create feature is particularly useful when emails are sent to a group of emails among which a few are existing leads/contacts while others are not.
For example, let us assume that you are enquiring the possibility of sale by reaching out to the Head of the IT department of a firm. Whenever a new stakeholder, for example, the head of sales, is added to the email thread through Cc, a new lead will be created on freshsales. This will make it easy to track and follow-up with multiple prospects.  

When should I uncheck this option?

It is advisable to deactivate the auto-create feature when your email contains a large number of recipients who are not your leads/ contacts.
For example, let us assume that you are reaching out to a lead/contact and the email thread consists of several other email addresses such as consultants or suppliers in the Cc. In this case, having the auto-create feature activated would lead to a number of  junk/inconsequential leads getting created. Hence, it is advisable to deactivate the feature when a large number of new email addresses are involved.

How to enable/disable this feature?

Detailed Steps:

1. Go to the profile icon on the top of your Freshsales application and click the same. Click on Settings. This opens up a page dedicated to personal email settings.
   
   

2. Head to Email settings. Here, you’ll find a checkbox that allows you to turn on the Auto-create feature
   

3. Before clicking the checkbox, click on the dropdown to determine whether the incoming emails will be created as Leads/Contacts.