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Tyler from TWW Tech explains how to set up a team vacation tracker in SharePoint using Microsoft Lists. Initially tasked with replicating a complex PTO tracker from an Excel file, he decided to create a simpler solution with SharePoint Lists for efficiency. This setup is quick, taking around 10 minutes, and requires minimal maintenance over time. An additional benefit is its integration with Microsoft Teams. Tyler emphasizes that Microsoft Lists is essentially integrated with SharePoint Lists, allowing them to work seamlessly together.