A converting machine is used to convert sheet material into packaging templates for assembly into boxes or other packaging. The converting machine includes a converting assembly that performs transverse conversion functions and longitudinal conversion functions on the sheet material to create the packaging templates. A fanfold crease sensing mechanism detects the presence and location of fanfold creases in the sheet material. Based on the location of the fanfold creases, the fanfold creases are either cut out of the sheet material, or the sheet material is cut to adjust the position of the fanfold crease in a packaging template.