Assuming you uploaded the report file through the ‘Reports Admin’ screen, and set up the report definition metadata for it, then you shouldn’t need to put it anywhere. I would need to see how you have your system configured. The error message indicates that FSM thinks this is a server-side report - a .RDL file that it needs SSRS to work with, not a client-side report. Do you have the report ‘Source’ set to ‘Client Report’ in the Reports Admin screen?
Also, before you upload client reports, you will want to make sure you have the following App Params set:
ENABLE_CLIENT_REPORTS : Y
CLIENT_REPORTS_PATH : a working, accessible address or addresses. Make sure to put your custom path first and the baseline reports path second if you have custom versions of baseline reports.