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The tutorial explains how to create invoices using an invoice generator. The process involves entering details such as the sender's name, recipient's name (company), date of invoice, description of service/product, rate (in dollars, which can be changed to Kenyan shillings), and amount. The example provided includes two services: social media service and report writing, totaling 70,000 shillings. Normally, Kenyan services are not charged with VAT.