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The tutorial explains how to create a formula on an envelope or template using text boxes for fields such as drop-down and date signed. The text boxes should only contain numbers and dates, and data labels are essential for identifying the fields for the formula. By naming three text boxes and completing data labels, the formula field can be set up and customized with operations such as addition. There is no need to include equals sign, and decimal places can be specified for the calculation. The formula setup process is completed by saving the changes.
