Hi @mlehr ,
You can create different sections in your course, however I'm not sure whether it will upload grades to PowerSchool correctly having never used PowerSchool before...
When the course is created there's already one section automatically created (usually the title of the course). You can rename this section, but if you delete it bad things could happen...I can't remember what bad things happened when I did it years ago, but I remember it was bad.
The How do I add a section to a course? page in the guides has the instructions you'll need to add a new section in your course. Once you create the section, you can add specific students and instructors to that section and organize the grade book by section.
You can find more helpful instructions here:
How do I edit the details for a course section? in case you need to change the section name or start and end date
How do I edit sections for an enrollment in my course? in case you'd like to move a student from one section to another or have them co-enrolled in multiple sections.
Hope this helps!
Sarah