How To – Create A New Document In SharePoint
To create a new document in SharePoint, first navigate to the library you wish to create a document in and click the New dropdown menu after the document listing pane and select New Document :

(note that the New menu may have additional options if the administrator of that library has configured additional content types for the library).
This will open the Office application with the default template that was specified for that document library.
When you have completed the document select Save in the application and it will automatically be saved in the correct folder in the SharePoint library.
As an alternative you might consider creating a document normally and then upload it to a SharePoint library (see this tutorial on how to upload a file to SharePoint)
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