The second location you suggest is correct.
The 'Save as template' function is found under Utilities in the work plan. If you are not able to see this option it could be for a couple of different reasons.
1- The Save as Template function only shows when the project line (top level) is highlighted, if you are anywhere else in the work plan then the function will not be shown.
2- The function has been removed from the ribbon by your system admin (Or consultant). It can easily be restored but you would need admin permissions to get to the settings area.