Creating Envelopes _ Your letter will not be complete unless you have an envelope also formatted appropriately. What's good about this function is that you can either customize your own envelope or allow Word to come up with a matching envelope to the letter you have written using the application. What it does is it automatically copies the address and uses it to create the envelope. That helps you do away with manual typing.
Click on the the template. At the bottom right of the dialogue you'll see two options: 'Document' and 'Template'. If you want to use the letterhead to send as a document or letter, choose 'Document.' If you want to edit the template, choose 'Template.' When you choose 'Document,' it gets saved as an MS Word document.