
As a grad student I am constantly writing papers for pretty much all of my classes, as such I have developed a distaste for anything with APA or MLA on it. I recently stumbled upon MS Word’s ability to keep track of your citations, most importantly the ability to correctly format those citations throughout your paper, and finally the creation of a correctly formatted Works Cited page.
The guide below will walk you through the process of creating citations, managing your citations, and generating your Works Cited page. If you have any comments or questions, please post them below.
Note: I used Office 2007 on Windows Vista for this tutorial.
Before starting, open Word and lets select a formatting style.

1. With Word open, click on the References tab, click on the Style drop-down menu and choose the style you wish to use.
Note: I chose APA for this example

2. Make sure you are still in the References tab and click on the Insert Citation button, this will produce a drop-down, click Add New Source

3. The Create Source window will open. This form allows you to add all of the pertinent information for your source. Enter the available information in the highlighted fields.

Note: That you have the option to specify the type of source, the forms fields will change based on the type of source selected. In this tutorial I will be using this article on my website as a reference.

Note: Whenever you activate a field (the cursor is located in the field) an example of the formatting for that field will appear. This is very helpful if you’re not familiar with a specific style like APA.

4. Once you are done entering the information, click OK

Note: When the reference is inserted it will appear similar to the screenshot above (I used APA format)

5. Once you have added your reference to the list, you can access it from the Insert Citation drop-down located in the References tab. When you click on the reference it will automatically be added wherever the cursor is located.
Managing Sources
Aside from creating references on the fly you have the option of adding, modifying, and deleting them in the Source Manager window.

1. To manage your sources click on the Manage Sources window

2. The Manage Sources window will list all of the sources you have ever added in Word, you have the option of making them available to a specific document by bringing them over to the Current List area, you can accomplish this by clicking on the specific reference and hitting the Copy -> button. You can also remove references from either list by clicking on the Delete button, you can edit with the Edit button, and you can create new references by hitting the New button and following the steps above.
You can also preview a specific reference in the Preview section located at the bottom of the window.
Creating the Bibliography or Works Cited Page
One of the most dreaded formatting and guideline intensive areas of any paper. When you use the steps above to create your references, a Works Cited/Bibliography page is a click away.

1. Click on the Bibliography button located in the References tab and select the page you would like to use, Bibliography or Works Cited.

2. The Bibliography/Works Cited page will be inserted at the end of your document.
Article posted on 11 19th, 2008
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Nice to see that Word has this functionality, I have long since however given up on Microsoft Word for my papers and learned Latex.
It has been extremely useful to me. I didn’t know about the LaTeX project, thanks for sharing.
I notice that AP style wasn’t an option in that list. This is good, because Associated Press has a wacky and stupid style guide.
I had no idea Word could cite in proper format! This is going to make any more term papers I do a lot easier! Thanks for the tip!
Warning: If you use this feature, back up the file %APPDATA%\Microsoft\Bibliography\Sources.xml
This is where Word stores all the citation data. I lost over 100 citations on a big project because Word overwrote this file when I had to reinstall. I had backed up all my documents, but I didn’t know about this file at the time.
@Laszlo: This is a great tip…hadn’t thought about loosing the hundreds of citations I have stored there. Thanks a lot for the tip. I’ll be adding it to the article soon.
Would be great if word should support export files to “Reference Manager” or “End Note”. Or support sites like http://apps.isiknowledge.com
@Bart Goossens: I’m sure that as more and more Word Processors move online, we will see more interoperability with online services and other applications.
Have you tried Laszlo’s suggestion above with the XML file…maybe you can use that to import to the service you referenced. Let me know if you try it out and if it works.
Probably would have helped me when I was doing my dissertation big time way back when. Although I ended up using the Zotero plugin for Firefox, which does a good job.