​​​​​​Introduction The power of a spreadsheet comes from its ability to generate data using formulas and functions that calculate values. Formulas become even more meaningful when the results are based on data from your worksheet. For example, when you want to know the total of the expenses in your budget worksheet, you use a function in a formula to add the expenses and display the total. Data is often easier to understand when it’s presented in a chart. You can use charts to demonstrate a trend, show an area of growth or decline, and support your overall analysis. Charts are often used in conjunction with data to draw a conclusion because the numbers alone don’t provide the picture needed to understand a situation fully. Excel tables are another way to analyze related data. Tables include commands for searching, sorting, and filtering data.   Using Formulas A formula is a mathematical statement that calculates a value. To create a formula in your worksheet, you must begin with an equals sign (=). For example, if you type “=25+2” in a cell, it will display “27”. The following symbols represent operators: Exponentiation ^ Multiplication * Division / Addition + Subtraction - (Transcript downloaded)   The exponentiation symbol raises a number to a power, as in 32. To perform this calculation in Excel, you use the formula =3^2 to display 9. Formulas are evaluated using the mathematical order of operations, which states that exponentiation is calculated first, followed by multiplication and division, and then addition and subtraction. The following formulas demonstrate the order of operations: The exponentiation symbol raises a number to a power, as in 32. To perform this calculation in Excel, you use the formula =3^2 to display 9. Formulas are evaluated using the mathematical order of operations, which states that exponentiation is calculated first, followed by multiplication and division, and then addition and subtraction. The following formulas demonstrate the order of operations: Formula Value =3*4+2 14 =10*2^2 40 =8+6/3-1 9   To change the order of operations, you can put parentheses around calculations to be performed first. To change the order of operations, you can put parentheses around calculations to be performed first. Formula Value =3*(4+2) 18 =(10*2)^2 400 =(8+6)/(3-1) 7     Writing Formulas (Transcript downloaded)   Displaying Formulas When you enter a formula into a cell, the result of the calculation is displayed. To review or edit the actual formula, click the cell and use the Formula bar to access the actual cell contents. This can be inconvenient when reviewing an entire worksheet. To see all the formulas in a spreadsheet at once, click Show Formulas on the Formulas tab or press Ctrl+`.  When formulas are displayed, column widths adjust automatically to display the entire formula. Selecting Show Formulas again reverts it back to the original formatting.    Modifying Values in Formulas To modify an existing formula, you can either double-click the cell to edit or select the cell containing the formula and then click on the Formula bar. Make the change and press Enter. The video uses an example spreadsheet where you need to change the formula used for the tax calculation. In the example, you can double-click cell D5 so that the formula may be edited. Otherwise, click the cell to edit the formula in the Formula bar.    Error Checking Excel checks formulas when you enter them. When a formula can’t be calculated, an error is displayed and a green triangle is added to the upper-left corner of the cell. For example, the formula =4/0 displays #DIV/0!. This displays because numbers can’t be divided by 0. You can select the cell with the error and click Error Checking to display a description of the error and a list of options. You can click Show Calculation Steps to display a dialog box that examines the formula. If errors are displayed in your worksheet, but the Error Checking menu isn’t available, you can click Error Checking on the Formulas tab to check all the cells in your worksheet.   Using Cell References When you want to make calculations based on the data in your spreadsheet, you usually include a cell reference in your formula rather than the actual number. For example, in the image, cell C1 displays a value based on numbers in cells A1 and B1. By using cell references in formulas, your spreadsheet becomes easier to update. If you change a value in a cell referenced in a formula, the formula automatically recalculates. Although you can type the cell name in a formula to create the cell reference, you can avoid typing errors by selecting the cell instead. To do this, you type a formula up to the point where the cell name appears and then click on the cell to be used in the calculation. You can also use the arrow key to select the cell. You’ll almost always want to use cell references in worksheet formulas rather than actual numbers. It’s much easier to have the calculation results change automatically when values are entered than to update each formula with the correct numbers manually. Whether your values are sales figures, age ranges, horsepower, voltage, or grades, your data will likely change over time, and formulas with cell references make sure your spreadsheet stays up to date and accurate. You can’t create a formula in a cell that you want to reference because this will cause a circular reference error. The formula can’t be calculated until the cell has a value, but the cell can’t have a value until the formula is entered.   Displaying Formulas with Cell References When you click Show Formulas on the Formulas tab, you can select a cell with a formula to outline the cells referenced in the formula. If you want to examine just one formula, double-click the cell to display the formula and outline referenced cells.   Copying Formulas You’ll often want to copy a formula you’ve created to the next cell in a row or column. For this, you can use Copy and Paste, but when copying to adjacent cells, you can also use the Fill Handle, a point in the lower-right corner of the active cell that you can drag to include other cells. To do this, select the cell with the formula you want to copy, and then drag its Fill Handle to copy the formula to a range of cells. When a formula is copied, cell references automatically change relative to the new row or column. For example, in the figures, the formula in cell C2 is =B2*A2. When copied to the cells below, it changes to =B3*A3 and =B4*A4, respectively. When cell references can change in this way, they’re called relative cell references.  Relative references change when a formula is moved or copied from one cell to another. Relative references are a powerful tool in applying the same calculation to hundreds of rows and columns of data.    Absolute and Mixed Cell References If you want a cell reference in a formula to remain the same when you copy it to another cell, then you need to make it an absolute cell reference, which is a cell reference that doesn’t change when a formula is copied to other cells. For example, the formula in the figure refers to a tax rate in cell B2. The cell reference has dollar signs in front of the column letter and row number to indicate that neither should change when you copy the formula to another cell. You create an absolute reference by pressing F4 after you type or click on the cell to be referenced. In some cases, you may need a mixed cell reference in your formula, where either the column or row doesn’t change when copied. In this case, you can press F4 until the appropriate reference appears. Excel references column headings and table names instead of cell references when formulas are inserted into a table. Cell names and range names assigned to a given cell or range make it easier to understand what calculations are being performed in a formula and to reuse the references as necessary. Suppose you want to deposit $500 in the bank and then calculate how much money you’ll have at the end of one year if interest is compounded semiannually at 8%. To find the answer, you’ll first need to find the interest earned during the first compounding period. Then, you’ll add this to the original principal. Next, find the interest on this new principal for the second compounding period. Finally, add this interest to the new principal to obtain the final balance. If you want to calculate manually, you would use the interest formula of principal multiplied by rate, multiplied by time. Then, you would substitute the values and multiply them to solve. You would need to calculate this again to obtain the final balance. The final balance is $540.80, which is the future value of the $500 deposit. If the interest were compounded quarterly, there would be four periods in a year. You would calculate the interest the same way, except that you would have to repeat the calculation four times for each year. For monthly compounding, you would repeat the calculations 12 times for each year. Although this process isn’t difficult, it’s tedious and time-consuming. Fortunately, with Excel, you can create formulas that make calculating compound interest much easier. Begin by creating a compound interest calculator. The initial investment, found in B3, is $500; the annual interest rate, found in B4, is 8%; the compounding period, found in B4, is semiannual (2); and the number of years, found in B6, is 1. The formula to calculate compound interest is the initial investment (or present value) multiplied by (1 plus the interest rate, which is the annual interest rate divided by the compounding periods per year) to the power of the number of periods (the number of years multiplied by compounding periods per year). Once you’ve written the formula, Excel automatically calculates the compound interest. As you know, the answer is $540.80. Remember, if you want a cell reference in a formula to remain the same when you copy it to another cell, then you’ll need to make it an absolute cell reference. An absolute cell reference doesn’t change if the formula is copied to other cells. In the video example, the cell reference for B2 has dollar signs in front of the column letter and row number to indicate that neither should change when you copy the formula to another cell. You can create an absolute cell reference by pressing F4 after you type or click on the cell to be referenced.   Using Functions in Formulas You might be thinking about all the work needed to create something as simple as a formula that sums the values in five cells. From what you’ve learned so far, the formula might look like =A1+A2+A3+A4+A5. That’s a long formula for a simple calculation. But Excel is a spreadsheet application with many features for analyzing data, so it includes built-in functions for use in formulas. A function is a named set of operations that takes one or more values and produces a single output. For example, the SUM function accepts a cell range and returns the sum of the values in those cells, as in =SUM(A1:A5). With this simple formula, you can calculate the sum of the values in cells A1 through A5. Functions are always used as part of a formula and usually require data, called arguments, inside parentheses after the function name. The SUM function, for example, requires a cell range or a set of cell names separated by commas. When you need to specify a cell range in a function, use a colon between the first cell and the last. To add a cell range to a function, type the function up to the point where the cell range is needed, and then drag from the first cell in the range to the last before typing the closing parenthesis. To help you, Excel displays a colored outline showing the range. If you want to edit the range after you’ve entered the formula, click the cell with the formula, and then drag the cell outline or delete the range and select a new one.   Commonly Used Functions Commonly used Excel functions include the following: SUM adds the values in a range and returns the sum. AVERAGE adds the values in a range and then divides the total by the number of values. COUNT returns the number of cells in a range that contain values. COUNTA counts the number of cells that aren’t empty in a range of text or in logical or error values. COUNTBLANK is a statistical function on the Formulas ribbon on the Functional Library group that will count the number of empty cells in a range of cells.  MAX returns the maximum value in a range of cells. MIN returns the minimum value in a range of cells. In many cases, you’ll need to create the formula with one of these functions to make the calculation you need. However, the Totals tab in the Quick Analysis gallery is another option for creating totals.   The IF Function Another commonly used function is IF, which displays a value based on a comparison. For example, if you want to display “STUDY” when the grade average in cell G7 is below 85 or “GREAT” otherwise, use =IF(G7<85, “STUDY”, “GREAT”). The IF function takes the general form IF(comparison, value if true, value if false) and can use the following logical operators in the comparison. If the logical test entered as an argument is true, the IF function will return a value. If the logical test isn’t true, it will return a different value. For example, if the test is true, it might return a 1, and if the test is false, it might return a 0.    Equal to | = Less than | < Greater than | > Less than or equal to | <= Greater than or equal to | >= Not equal to | <>   FINANCIAL SPREADSHEETS Excel has hundreds of built-in functions, many of which are used in financial calculations for mortgages, loan payments, depreciation, accrued interest, and other complex calculations. You can search for these functions in Excel’s Help menu or the Show Me box to see what each does.   Sorting Data Your spreadsheet should present data in an organized way. One way to make sure information is presented in a logical format is to order rows of data by sorting, which means organizing by using a set parameter. You can sort in ascending order, from low to high, or descending order, from high to low. If the data you’re basing the sort on is a date or time, then an ascending sort puts rows into chronological order. Sort your worksheet by first selecting the rows to be sorted. Drag from the first row number to the last in the range to be sorted, and then on the Home tab, select Sort & Filter for options. Use From Smallest to Largest for ascending order or From Largest to Smallest for descending order. These commands automatically base the sort on the data in column A. Use Custom Sort to display a dialog box where you can select a different column to base the sort on.   Charts A chart, sometimes called a graph, visually represents a range of data. A pie chart displays data as a percentage of a whole.   Chart Terminology A chart is a graphic with many elements. For example, pie charts include the following: A chart title, which corresponds to the title of the data series column Slices, or chunks of the chart that are sized relative to the values in the data series A legend labeling the components of the chart based on the category labels in the first column of data A chart area that provides the boundaries of the graphic A Chart Elements button with quick access to elements that can be added or removed A Chart Styles button for selecting a style and color scheme for the chart A Chart Filters button for adding and removing categories, series title, and category titles, and for editing the data source A pie chart has only one data series, but other chart types can include multiple columns of values. Column charts are useful for comparing differences in value by using vertical bars sized relative to the values in the data series. Bar charts are useful for comparing differences in value by using horizontal bars sized relative to the values in the data series. Line charts connect data values with a line to show how data changes over time. Area charts are used to demonstrate the total value across a trend. With the rise of the internet as the main information-gathering tool, people have become accustomed to getting information in smaller and smaller chunks. Often, a social news website will publish an article with just a graphic and one paragraph explaining that graphic. Charts in presentations serve the same purpose as these news graphics. They’re a way to present the information in a condensed and easy-to-understand format without needing to dig through the details of the data. In your career, there may be times when your supervisor asks for a report, and he or she will likely be expecting a chart to summarize the information. If you simply hand in a bunch of numbers, you might spend hours breaking them down when a chart would have done the same in minutes.   Creating and Customizing a Chart The easiest way to create a chart is to first select the data you want in your chart. Your selection should include column titles and row labels so that Excel can automatically include this information. Next, select Recommended Charts on the Insert tab to display a dialog box. Navigate through recommended charts on the left of the dialog box to see a preview, or click the All Charts tab and click charts there to see additional previews. After finding a chart that’s close to what you want, select the preview and then click OK. The chart is placed on the worksheet, where you can customize it. Because the chart is a graphic, there are many ways to customize it. For example, in a pie chart, you can drag a slice away from the others to create an exploding pie chart. To make any changes, you must first select a chart. A selected chart displays handles and the Chart Elements, Chart Styles, and Chart Filters buttons. The Ribbon displays the Chart Tools Design and Chart Tools Format tabs. These tabs contain numerous options for further formatting your chart.   Moving, Sizing, Deleting, and Changing a Chart Because a chart is a graphic, you can move it to another area of the worksheet by dragging. In some cases, your workbook will be better organized if you place your chart on a separate worksheet. To move a chart to an individual worksheet, select the chart and then click Move Chart on the Chart Tools Design tab. In the displayed dialog box, click New Sheet and then OK. You can access the chart by clicking the appropriate sheet tab below the worksheet. To size a selected chart, drag a handle. Pressing the Delete key removes the chart from the worksheet. If the chart is on a different sheet, right-click the tab for that sheet and click Delete to remove the chart and any data on that sheet. To change the actual chart type, select the chart and click Change Chart Type on the Chart Tools Design tab to display a dialog box for selecting a new chart.   Quick Analysis Charts and Sparklines Another option for creating charts is to use the Quick Analysis button, which is displayed when you select a range of numeric data. The Charts tab has several options, or you can click More Charts to display the Insert Charts dialog box. Sparklines are tiny charts inside single cells. They’re useful for showing a data trend. In the Sparklines tab of the Quick Analysis button, you can point to a Sparkline to see a preview and then click an option to insert the chart into the selected cell. You’ll probably want to change the cell width to better accommodate the Sparkline chart. Sparklines can be customized with commands on the Sparklines Tools Design tab, which is added to the Ribbon by selecting a cell with a Sparkline. When you want to remove a Sparkline chart, right-click the cell with the chart and click Delete or click Clear > Clear All on the Home tab.   Printing a Chart You may need to change the worksheet margins or drag a chart below data to print it on a page. To determine how a chart will look, choose Print on the File tab for a preview.   Key Points Add formulas to your worksheet to make calculations. A formula must begin with “=”. To see your formulas in cells instead of the calculated value, click Show Formulas on the Formulas tab. When a formula can’t be calculated, you can display a description of the error with the Error Checking menu. Use cell references instead of values in your formulas to calculate data from your worksheet.  Common functions include SUM, AVERAGE, COUNT, MIN, MAX, and IF. The IF function displays a value based on a comparison. To organize the rows in your spreadsheet based on the value in a column, click Sort & Filter on the Home tab and then select a sort option. A chart is a graphic that contains many elements. A selected chart displays the Chart Elements, Chart Styles, and Chart Filters buttons for editing, and the Chart Tools Design tab and Chart Tools Format tab on the Ribbon. Sparklines can be created in individual cells with commands in the Quick Analysis button. To change your chart to a different type, click Change Chart Type on the Chart Tools Design tab. If you want to see how a chart will print, click Print on the File tab.

Read this assignment.  An integrated document uses information created in one Office application in a different Office application. For example, you can include a range of cells or a chart from an Excel workbook in a Word document file. One way to add existing spreadsheet data to a Word document is by pasting it into the document. This method allows you to transfer data quickly and easily while reducing the possibility of errors from retyping and reformatting data. You can also share information between documents with an application object. An application object retains source formats and can be edited with the source application. This type of data integration uses object linking and embedding (OLE). When an integrated document is created this way, it’s sometimes called a compound document because more than one application interface is available.   Copy and Paste from Excel to Word The following is a list of steps to copy and paste from an Excel workbook into a Word document. Display the source file, which is the file containing the information you want to copy. In this case, display the Excel file with the data or chart to be copied. Select the cell range to copy, or click the chart area of a chart to select it for copying. Click Copy on the Home tab. Display the destination file, the file in which the copied information is to be pasted. In this case, display the Word file that’s intended to contain the data. Place the insertion point at the appropriate position. Click Paste on the Home tab.   Paste Options There are multiple paste options between Word and Excel that allow you to paste text and graphics. The paste options vary depending on the type of data you paste, but they generally allow you to do the following: Keep the source formatting Use the destination theme Paste as a picture Paste as text only Perform a combination of formatting and linking or embedding The Paste Special option provides options to paste as one of the following: Microsoft Excel worksheet object (You can click the option to display as an Excel icon.) Formatted text (RTF) Unformatted text Bitmap Picture (Enhanced Metalife) HTML format Unformatted Unicode text When you choose to use source formatting or destination themes, Excel data is converted to a Word table. Additionally, if you choose to link a pasted cell range, then it becomes a shortcut to the source file. Linked data is also automatically updated in your Word document if there are changes to the source spreadsheet. This is useful when you create documents such as weekly progress reports that should reflect changes. Pasted charts are linked by default, but you can choose to embed the data. Embedded data becomes part of your destination file and remains static even if the source data changes. You’ll typically use embedded data when you don’t want your data to change, as in a spring marketing report that should reflect data from a certain period.   Editing Embedded and Linked Data When you embed or link pasted data, you make it possible to edit the data with the source application. However, edits to embedded data are reflected only in the destination file, while edits to linked data are made to both the destination and source files. For example, a linked chart might look similar to the one shown. You can size the chart by dragging the handles. When you want to edit the contents, click Edit Data > Edit Data on the Chart Tools Design tab. When you edit data, the linked Excel spreadsheet file is displayed. You can size the spreadsheet to reveal more rows and columns to make editing data easier. After making changes, simply click the Close box to remove it. You use the same process to edit an embedded chart, keeping in mind that you’re editing a copy of the data that’s stored in Word. There will be no changes made to a file outside of the Word document. To edit a linked spreadsheet range, right-click the range and then click a command from the Linked Worksheet Object menu. Both Edit Link and Open Link display a spreadsheet window with your pasted data. If you want to manage how links are handled, click Links.   Copy and Paste from Word to Excel When developing a spreadsheet, you may need to compile data from several different sources, including a Word document. Or, in some cases, you may want to analyze data from a Word table with functions and charts that are available only in Excel. In either case, you can copy and paste Word data to an Excel spreadsheet. To copy text to a spreadsheet, you should first format it as a Word table or as text separated by tabs (called tab-delimited). When text is tab-delimited, each line corresponds to a row in the spreadsheet, and each tab indicates a new cell. The steps to copy and paste from a Word document to an Excel spreadsheet are as follows: Display the source file. In this case, display the Word file with the table or text to be copied. Select the text to copy. Or click the Table Move Handle to select the entire table. Click Copy on the Home tab. Display the destination file. In this case, display the Excel file that will contain the data. Click the cell that will be the upper-left cell of the data merge. Click Paste on the Home tab. You can also display the Clipboard task pane to paste copied data into a worksheet. Pasted text displays a Paste Options button in the lower-right cell. These options allow you to keep the source formatting or match the destination formatting.   Embedding an Excel Worksheet Object in a Word Document An Excel object has all the computing power of a spreadsheet and may offer a more effective way to display data and calculations in a Word document than the linked items just discussed. The easiest way to insert an Excel worksheet object is to click Table > Excel Spreadsheet on Word’s Insert tab, which embeds a new spreadsheet object at the insertion point. When the spreadsheet object is active, the Excel Formula bar, Ribbon, and other spreadsheet features are displayed. Clicking anywhere outside the object returns you to the Word application window. When you want to change the number of rows and columns displayed by the embedded Excel object, drag a sizing handle on the active object. To change the size of the object itself, click outside the Excel object to return to the Word document, and then drag a sizing handle. To edit a spreadsheet object, double-click the object to activate the Excel features. You can also right-click the object and then click Worksheet Object > Edit to activate the sheet. For more extensive changes, you may find it easier to open the object in a spreadsheet window, where you can make edits, and then close the window to update the document. To do this, right-click the object and then click Worksheet Object > Open.   Linking an Excel Worksheet Object to a Word Document If you have an existing Excel worksheet, you can choose to link it to your document instead of embedding it. When you do this, any changes made to the linked spreadsheet file outside the document will be reflected automatically in your Word document. Follow these steps to insert an Excel object in a Word document. Display the source Excel file. Select the cell range. Click Copy on the Home tab. Display the destination Word file and then place the insertion point at the appropriate position. On the Home tab, click the arrow in the Paste command and then click Paste Special. Click Microsoft Excel Worksheet Object. Click Paste to embed the spreadsheet data in an Excel object, or Paste Link to create an Excel object that’s a shortcut to the source file, and then click OK. You can also insert an existing object by clicking Object on the Insert tab and then clicking the Create from File tab. From here, click Browse to display a dialog box for locating the existing spreadsheet. Click Link to file to insert the entire worksheet and make it a shortcut to the source file. Otherwise, a copy of the existing file will be embedded in your document. This method doesn’t require you to open the source file and copy data. However, linking data this way displays the entire worksheet with no option of reducing the number of displayed rows and columns. You edit linked spreadsheet data similarly to embedded spreadsheet data. Simply double-click the object to open an Excel window, or right-click the object and then click Linked Worksheet Object > Edit Link. After editing the source file, you may need to right-click the pasted object and click Update Link to make the source changes appear in the destination document.   Embedding a New Excel Chart Object into Word Sometimes you may want to illustrate a point in your Word document with a simple chart. Click Chart on the Insert tab, and then select the chart type from the dialog box. A new chart object displays default data and an Excel spreadsheet. To enter your data for the chart, simply delete the existing data in the worksheet object and type your own. The spreadsheet isn’t part of your Word document and can be closed after entering your data. If you need to edit the chart data after closing the spreadsheet, right-click the chart and then click Edit Data > Edit Data. An active chart object displays Excel features in the Word window, including the Chart Tools Design tab, which allows you to customize your new chart. To return to the Word document, close the spreadsheet and click anywhere outside of the chart. If you need to edit the chart, click it to make it active and then use the Chart Tools Design and Format tabs. Although you can insert an existing Excel chart into a Word document with the Object command, you’ll have a better outcome if you copy and paste an existing chart from an Excel worksheet to your Word document. You can then choose to embed or link the pasted chart by using the Paste Options button.   Adding a Word Document Object to an Excel Worksheet Sometimes you may need to include a lengthy explanation in an Excel spreadsheet. To do this without being limited to cell sizes and restrictions, add a Word object to a spreadsheet. This allows you to type, format, and present your text using all the options available in Word. Word objects aren’t bound to a cell range. You can drag them anywhere on the spreadsheet. Choose Object on the Insert tab and then select Microsoft Word. You may also add a Word object from an existing file by selecting the Microsoft Word option on the Create from File tab in the Object dialog box. When the Word object is active, the Word window features are displayed. Clicking anywhere outside the object will return to the Excel application window. Double-click the Word object to activate it again for editing. You can also access it by right-clicking the object and then clicking Worksheet Object > Open.  Reflect and Respond CREATING INTEGRATED DOCUMENTS Think about how linking and embedding might affect your integrated documents. You should probably keep in mind that linked data might display unexpected results if you print out a document several months after it’s been created. On the other hand, if you embed data, you need to be aware that it won’t reflect the most current information from the source document. PRESENTING COMPLEX DATA Inserting a chart object is a convenient way to explain data in a Word document graphically. But what about charts that represent many columns and rows of data? Do you think you should embed a complex chart object when you have a lot of data to chart? No, you should probably create a separate Excel file to organize and chart many rows and columns of data. You can still include the chart in the Word document by using copy and paste. By storing the data in an external Excel file, you’ll find it easier to update your data, and you can create multiple charts to store with the data.   Key Points An integrated document is created by including information from two or more Microsoft Office applications. You can apply formats used in the destination or keep the source formatting intact. Linked data updates in the destination file when changes are made to the source file. Embedded data becomes part of the destination file and doesn’t change, even if the source changes. When copying data from a Word document to an Excel worksheet, first format the Word data as a table or text separated by tabs. Insert an Excel worksheet object by clicking Table > Excel Spreadsheet on the Insert tab. Make your object active again for editing by double-clicking the object or by right-clicking the object and clicking Worksheet Object > Edit or > Open. Link an existing object by clicking Object on the Insert tab. In the dialog box, click Link to File on the Create from File tab. To insert a chart object into a Word document, click Chart on the Insert tab and then modify the sample data. To edit a Word object, right-click the object and then click Worksheet Object > Open.

Read this assignment.  Mail merge is a process used to create form letters. For example, instead of starting a letter with “Dear Customer,” you can use mail merge to personalize the letter with customers’ actual names. The process involves inserting merge fields in a Word document where information from a data source, a file containing a collection of organized data, is to be placed.   Creating an Excel Data Source Because a data source is a collection of organized data, an Excel spreadsheet is an ideal format. Your spreadsheet data source should include column labels in the first row and then appropriately formatted data in each column. For example, a column containing ZIP codes should be formatted as text because leading zeros in a numeric field will be lost when merged into a Word document. (For example, a ZIP code of 00501 will show as 501.) If you haven't yet merged data in an Excel spreadsheet, you must create the Excel file before you begin the mail merge process. The columns of a spreadsheet data source are the fields that you use to personalize your mail merge document. A file that exclusively stores information for a mail merge is often called a mailing list. Mail merge data can be extensive, with hundreds or even thousands of rows of data. Your data source will be more manageable if you use a spreadsheet table that can be sorted, searched, and filtered easily. Table headers and formatting will help keep your data organized. You should format your table before entering data in a new source. To do this, type the headers and then select the headers and the empty row below. Next, click Table on the Insert tab. When you enter data into your new table, press the Tab key to move from field to field. When you reach the last column in the table, pressing Tab automatically adds a new row, extending your table. Commonly, names and addresses are provided as tab-delimited text (a .txt file) or as comma-separated values (a .csv file). When you’re faced with using data from one of these file types for your mail merge, you must first import the information to Excel to create an acceptable data source. To do this, click From Text on the Data tab. After selecting the file, you’ll be guided through a series of prompts by the Text Import Wizard.   Creating a Mail Merge Document Using an Excel Data Source In Word, the Mailings tab is organized left to right to take you through the mail merge process from start to finish. When using an Excel worksheet as your data source, use the following steps in the mail merge process: Click Start Mail Merge to select your document type. Click Select Recipients > Use an Existing List to use an Excel spreadsheet as your data source. (Remember, you must create the spreadsheet file before you start the mail merge process.) Type the content for your document, clicking Address Block, Greeting Line, or Insert Merge Field where personalized content is needed. Click Preview Results to review your document with actual field values. Click Finish & Merge to edit, print, or email individual documents. When using Address Block or Greeting Line to insert information, you may need to click Match Fields first to match your field names to required fields. You can also click Match Fields in the Insert Address Block and Insert Greeting Line dialog boxes. To limit the mail merge to selected recipients, click Edit Recipient List on the Mailings tab. Limit the recipients by using the checkboxes in the list.   Updating Your Mail Merge Document When field names or values are updated in your data source, you’ll need to open your mail merge document and preview results to see how changes may have affected your document. When you open your mail merge document, you’ll get a warning dialog box about connecting to the data source. Click Yes to allow the document to access the data source. If you changed a column header in your data source, click Match Fields on the Mailings tab to be sure that field names are still matched up as expected. To review documents for the modified recipients only, use Edit Recipient List on the Mailings tab before previewing.   Key Points  For mail merge documents, use an Excel spreadsheet with column headings and organized data as the data source. Organize rows of spreadsheet data by formatting it as a table (clicking Table on the Insert tab). To create a mail merge document, use the commands on the Mailings tab. The first step in creating a mail merge document is to click Start Mail Merge on the Mailings tab. To use an Excel spreadsheet as a mail merge data source, click Select Recipients > Use an Existing List on the Mailings tab. To see merge letters as they’ll appear when printed, click Preview Results. The Finish & Merge command on the Mailings tab is used to edit, print, or email individual documents. Use Match Fields on the Mailings tab if your field names don’t match required fields in the Address Block and Greeting Line merge field options. To limit mail merge documents to select individuals, click Edit Recipient List on the Mailings tab.