diff --git a/CLAUDE.md b/CLAUDE.md
index 97955daeb..10dd08953 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -88,7 +88,7 @@ bundle exec rake rh_cloud_inventory:report:generate_upload
 organization_id=1 bundle exec rake rh_cloud_inventory:report:generate_upload
 
 # Generate report without uploading
-organization_id=1 target=/var/lib/foreman/red_hat_inventory/generated_reports/ \
+organization_id=1 target=tmp/red_hat_inventory/generated_reports/ \
   bundle exec rake rh_cloud_inventory:report:generate
 
 # Sync recommendations from Insights
diff --git a/README.md b/README.md
index 67659997b..c977e601e 100644
--- a/README.md
+++ b/README.md
@@ -29,12 +29,12 @@ From command-line:
 
     # generate report for specific organization (don't upload)
     export organization_id=1
-    export target=/var/lib/foreman/red_hat_inventory/generated_reports/
+    export target=/var/run/foreman/red_hat_inventory/generated_reports/
     /usr/sbin/foreman-rake rh_cloud_inventory:report:generate
 
     # upload previously generated report (needs to be named 'report_for_#{organization_id}.tar.gz')
     export organization_id=1
-    export target=/var/lib/foreman/red_hat_inventory/generated_reports/
+    export target=/var/run/foreman/red_hat_inventory/generated_reports/
     /usr/sbin/foreman-rake rh_cloud_inventory:report:upload
 
 #### Fetch hosts remediation data
diff --git a/lib/foreman_inventory_upload.rb b/lib/foreman_inventory_upload.rb
index 57fd8278f..4182f667a 100644
--- a/lib/foreman_inventory_upload.rb
+++ b/lib/foreman_inventory_upload.rb
@@ -1,12 +1,6 @@
 module ForemanInventoryUpload
   def self.base_folder
-    # in production setup, where selinux is enabled, we only have rights to
-    # create folders under /var/lib/foreman. If the folder does not exist, it's
-    # a dev setup, where we can use the parent of the current working directory
-    @base_folder ||= File.join(
-      Dir.glob('/var/lib/foreman').first || File.dirname(Dir.getwd),
-      'red_hat_inventory/'
-    )
+    @base_folder ||= Rails.root.join('tmp/red_hat_inventory').to_s
   end
 
   def self.uploads_folder