Rails Model, View, Controller, and Helper: what goes where?

To add to pauliephonic's answer:

Helper: functions to make creating the view easier. For example, if you're always iterating over a list of widgets to display their price, put it into a helper (along with a partial for the actual display). Or if you have a piece of RJS that you don't want cluttering up the view, put it into a helper.

MVC

Controller: Put code here that has to do with working out what a user wants, and deciding what to give them, working out whether they are logged in, whether they should see certain data, etc. In the end, the controller looks at requests and works out what data (Models) to show and what Views to render. If you are in doubt about whether code should go in the controller, then it probably shouldn't. Keep your controllers skinny.

View: The view should only contain the minimum code to display your data (Model), it shouldn't do lots of processing or calculating, it should be displaying data calculated (or summarized) by the Model, or generated from the Controller. If your View really needs to do processing that can't be done by the Model or Controller, put the code in a Helper. Lots of Ruby code in a View makes the pages markup hard to read.

Model: Your model should be where all your code that relates to your data (the entities that make up your site e.g. Users, Post, Accounts, Friends etc.) lives. If code needs to save, update or summarise data related to your entities, put it here. It will be re-usable across your Views and Controllers.

The MVC pattern is really only concerned with UI and nothing else. You shouldn't put any complex business logic in the controller as it controls the view but not the logic. The Controller should concern itself with selecting the proper view and delegate more complex stuff to the domain model (Model) or the business layer.

Domain Driven Design has a concept of Services which is a place you stick logic which needs to orchestrate a number of various types of objects which generally means logic which doesn't naturally belong on a Model class.

I generally think of the Service layer as the API of my applications. My Services layers usually map pretty closely to the requirements of the application I'm creating thus the Service layer acts as a simplification of the more complex interactions found in the lower levels of my app, i.e. you could accomplish the same goal bypassing the Service layers but you'd have to pull a lot more levers to make it work.

Note that I'm not talking about Rails here I'm talking about a general architectural style which addresses your particular problem.