Once you know how to create a data source, you can use that existing data to create labels. Of course, this is not the only way you can create labels in Microsoft Word. For example, you can create labels from scratch.
To create labels from scratch, on the main menu, click Tools -> Envelopes and Labels... In the Envelopes and Labels dialog, click the Labels property sheet. In the Address box, type your desired address. The Options button allows you to select a particular label format if the currently selected doesn't suit your need.
If you already have a source document such as created for a Mail Merge or another source, on the main menu, click Tools -> Mail Merge... From the Create Data Source dialog, the Get Data button and click Open Data Source... Microsoft Word will ask you to Setup A Main Document.
Practical Learning: Creating Labels
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Once the data source has been created, proceed as in the next section to merge data.
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If you are already in Microsoft Word, on the main menu, click Tools -> Mail Merge... If Microsoft Word is currently running a Mail Merge, on the Mail Merge toolbar, click the Mail Merge Helper button.
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Form the Mail Merge Helper dialog, in the Main Document section, click Create -> Mailing Labels... If there was no open mail merge document, you receive the following dialog If you were already in the middle of a mail merge processing document, Microsoft Word wants to know whether you have decided to change your mind and want to switch from the current document to a label format. After reading the content of either dialog, click New Main Document.
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On the Open Data Source dialog, locate the C:\My Documents\Sales Contacts folder. From the list of files, click Valuable Car Customers and click Open.
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Now Microsoft Word wants to set up the main document.  After reading the content of the dialog, click Set Up Main Document.
In the Product Number list, select 5160 - Address. 
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Unless you have a good reason, accept the other defaults and click OK.
In the Create Labels dialog, click Insert Merge Field and click FirstName
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Press Space.
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Click Insert Merge Field and click Last Name
Press Enter
Click Insert Merge Field -> Address
Press Enter
Click Insert Merge Field -> City
Type ,
Press Space
Click Insert Merge Field -> State
Press Space
Click Insert Merge Field -> ZIPCode 
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Click OK and Click Close.
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When you are back in Microsoft Word, on the Mail Merge toolbar, click the View Merged Data button 
Review the labeled document.
On the main menu, click File -> Save
On the Save As dialog, select the C:\My Documents\Sales Contacts folder. From the list of files, click Sales Promotion Letter. In the File name, click to the right of Sales Promotion Letter, double-click Letter to select it, then type - Labels so that when you finish, the File Name displays Sales Promotion - Labels
Click Save
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