Mail merge turns out to be easy to do, even easier than this document says:
http://www.wellesley.edu/Computing/Office03/MailMerge03/letexistdata.html
Basically, you just have to go to Tools -> Letters and Mailings -> Mail Merge
and follow the wizard clicking Next, Next. Just choose data source and insert suitable field at suitable place in the Word document.
The screenshots detail the procedure.
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