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For "Automatic Auto Order Type", the setting appears in the "Options" section:
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Shipping Tab of the Item Editor
There are two placed places within the Shipping Tab of the item editor that free shipping may be configured:.
1) The General Settings Section of The Main main Shipping Tab as shown below:
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2) The Method Specific Options Sub Tab
Since this configuration section let's you specific specify the specific Free Shipping methods, you do not have to separately configure the shipping method with the "Qualifies For Free Shipping" setting:.
Coupons
There are a number of Coupon Types that can be configured that will allow for free shipping: