The splitting on output sheets is designed to let you split a summary sheet by a parameter on the output sheet. This will let you have for example a summary page for each location on a project.
To set it up you will need to go to the sheet designer and open the output sheet. There is a new button called Output Options on the Design ribbon.
When you select a value to split by and then run the report it will only have the matching values for the selected split by option. For example, if we select the location ID we will get a report same location on one page.
The example above show the summary split by location ID. The splitting can be used along with the ordering at the same time.