What Are SharePoint Document Templates? Setup Guide

SharePoint Online Document Template refers to a formatted file, which could be a Word, Excel, or PowerPoint file, and is always used as the source whenever a user creates a document within a SharePoint library. When using this file, you get automatic formatting, required fields, and corporate branding since the user will not have to start from scratch.

From Microsoft Learn, one way of setting up a template in the document library is configuring the default templates within your document library. Document templates are usually used in the organization for any document that requires uniformity like contracts, proposals, invoices, and compliance reports.

Setting up a document template in the document library can be done in three ways. The first one involves configuration of the default file type when creating the document library. Another method is editing the default template under Library Settings. You can also choose to upload your own document template file. With Dock 365, users are able to manage contract lifecycles through preapproved contract templates.

If there's one thing that SharePoint is great at, it's helping you streamline your work. One area of work that we would all love to streamline is the document creation process. Luckily for us, SharePoint Online gives you the ability to do that through the use of Document Templates. With that said, let's take a look at what document templates are in SharePoint Online and how you can create and modify them.

What is a Document Template in SharePoint Online?

The document template in SharePoint Online is a pre-formatted file which is stored on the library level. It serves as the basis for any document created by the user when he/she clicks the New button in the document library. Templates may include any documents created in Microsoft Office or in any application available on the user's computer, such as Word document, Excel spreadsheet, Powerpoint presentation, etc.

If it is set up properly, all new files created in this library inherit formatting, headers, footers, placeholder fields and pre-filled information from the template file without any additional effort from the user. The use of templates is integrated into the library itself, and thus there is no risk of missing it and creating documents from scratch or any other file.

As stated on Microsoft Learn, in SharePoint Online, document libraries have two options regarding the number of templates – one default template and multiple templates using content types.

Why Should You Use Document Templates in SharePoint?

The key advantage of document templates is consistency. When each person in a group generates documents using the template, the documents generated will have consistent structure, whereby all the headers are aligned, branding is the same, all sections needed are included and there is no difference in the way the document looks because of personal choice or copying from some other file.

Consistency is particularly essential for documents having legal or compliance issues. A contract, a proposal for a project, a report of regulation or any document to be presented to clients should be identical irrespective of who generated it. Document templates eliminate the possibility of an employee working with an old version of a standard document or creating a document with missing clauses or sections.

Moreover, document templates make work faster. There is no need to spend a couple of minutes making your document fit organizational requirements. According to the official Microsoft information on SharePoint document libraries, configuring document templates takes only once and is beneficial for all documents generated in that particular library.

How Do You Create a Document Template in SharePoint Online?

SharePoint Online provides three methods for setting up a document template, depending on whether you are creating a new library or working with an existing one.

How Do You Set a Default File Type When Creating a SharePoint Library?

This method sets the template at library creation time and is the simplest approach when you are building a new document library from scratch.

Step 1: On your SharePoint site, click the Settings icon (the gear icon) in the top-right corner and select Add an App.

Step 2: Click Document Library from the list of available apps.

Step 3: Click Advanced Options to expand the full library creation form.

Step 4: In the Document Template dropdown, select the default file type you want new documents to start from - for example, Microsoft Word document, Microsoft Excel spreadsheet, or Microsoft PowerPoint presentation.

Step 5: Give the library a name and click Create.

Going forward, every document created via the New button in this library will open in the selected application, starting from a blank file of that type. You can further customize the template content using Method 2 below.

Customize the Default Template for a Document Library

There are two ways that you can change the default template in a document library, we will be taking a look at both of them.

How Do You Edit the Default Template in a Document Library?

Use this method to modify the content of an existing default template - for example, to add corporate branding, required placeholder fields, or updated legal language - without changing the library's structure.

Step 1: Navigate to the document library in SharePoint Online.

Step 2: Click Library Settings (accessible via the gear icon → Library settings in modern SharePoint, or via the Library tab in the ribbon in classic view).

Step 3: Under General Settings, click Advanced settings.

Step 4: In the Document Template section, you will see the URL of the current default template file. Click Edit Template.

Step 5: The template file opens in its native application (typically Microsoft Word). Make your changes - add headers, footers, placeholder text, required fields, or corporate branding.

Step 6: Save and close the file. The updated template takes effect immediately for all future documents created in the library.

According to Microsoft Support, this method is the quickest way to update an existing template when you need to refresh branding or revise required fields without creating a new library.

How Do You Specify a Custom Template for a SharePoint Library?

Use this method when you have a fully formatted template file that you want to upload and associate with an existing library.

Method A - Via the New menu:

Step 1: Create your template file in a compatible application (for example, Microsoft Word). Apply all required formatting, headers, footers, placeholder text, and content. Save the file locally.

Step 2: In your SharePoint library, click New in the command bar, then click Add template.

Step 3: Select and upload your template file. The template now appears as an option whenever users click New in the library.

Method B - Via File Explorer (Forms folder):

Step 1: Sync the SharePoint library to your local computer using the OneDrive sync client, or open it in File Explorer via the classic SharePoint view.

Step 2: Navigate to the Forms folder within the synced library directory on your local machine.

Step 3: Paste your custom template file into the Forms folder.

Step 4: Return to the SharePoint library in your browser and verify the template appears as an option when clicking New.

According to Microsoft Learn, the Forms folder is the internal storage location for library templates, and files placed there correctly replace or supplement the default template associated with the library.

How Can SharePoint Document Templates Support Contract Management?

Document templates offer their highest utility value when used in workflows that are standardized for the purpose of managing risk, which can clearly be illustrated by contract management. Procurement and legal departments relying on ad hoc documents and old contracts suffer from the risk of having missing clauses, outdated indemnity wording, and non-pre-approved governing laws.

Dock 365 is an application for managing contracts and vendors, native to Microsoft SharePoint and Microsoft 365 platforms. It provides you with the ability to store all your pre-approved contract templates - like NDAs, MSAs, SOWs, and amendment templates - in your SharePoint document library, which can easily be accessed by your teams via SharePoint interface. With Dock 365 being native to SharePoint, all the documents stay in your Microsoft 365 tenant: your data stays in your environment regardless of whether or not you change contract management systems in the future.

In addition to storing templates, Dock 365 allows to build contract lifecycle management functionality on top of the SharePoint infrastructure: automated approval workflows, digital signatures, obligations, and reporting throughout the entire contract portfolio. Contracts can be managed by business units, vendors, categories, or programs; every action is recorded.

Conclusion

It's not that hard to add and modify document templates in SharePoint Online. By using the tips we've provided today, you can get started building templates and using them to save time and ensure uniformity today.

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