For these index time configs Splunk will look in etc/system/local on the indexer or forwarder. Indexer configs will take priority over the forwarder configs if the forwarder is Not a heavy forwarder. Placing in the app folder can work, but only if there are no conflicting configs in the system local folder. The best place is on the indexer, if there are no heavy forwarders involved. That way you can manage them from one place. Like linu1998 said, the system that holds the configs must be restarted, and it will only affect new events.
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