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In this tutorial, the instructor explains how to add functionality to an invoice template. The first step is to add an invoice number and the current date. A list of terms is created using data validation. The due date is calculated by adding the invoice date to the number of days selected from the list. Formulas are then added to calculate the total amount based on a fixed rate per page. The tutorial provides a step-by-step guide on how to create a functional invoice template for a publishing or editing company.