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The video tutorial demonstrates how to create invoices using Invoice Generator. To begin, you input the sender and recipient information, along with the invoice date and payment due date. You then list the service or product description, with the rate displayed in dollars that can be converted to Kenyan shillings if needed. Additional services can be added, each with their corresponding rate. In this example, two services were charged at 30,000 and 40,000, totaling 70,000.