localhost only executes php files in htdocs

[grand]

Hello all
Only php files located in htdocs are executed?
If I have setup.php located in htdocs then typing in browser localhost/setup.php will execute the file. Having setup.php in /htdocs/test folder, the command localhost/htdocs/test/setup.php is not executed and the browser returns the error: object not found. But the object setup.php is in the test folder!
Can anybody help?
Thanks

[Altrea]

http://localhost/test/setup.php