While inserting a file (such as Word, Excel, PowerPoint, PDF, image, etc.) as an object into a Word document, you can either create a new or use an existing file.
Create a new file and insert as an object
1. Place the mouse cursor where you want to create the object.
2. From the Ribbon, under the tab Insert, within the group Text, click Object. The object dialog box appears.
3. Select an object to create from the Object Type list.
4. Select the Display as icon check box.
5. Word creates an icon of the selected Program at the cursor position and opens the program to create a new file.
For example, if you select object type as “Microsoft Office Excel Worksheet”, an Excel icon is created at the cursor position and then Word opens the Excel program to create a new Excel document.
Insert an existing file as an object
1. You can insert an existing file into your document in two different ways: either embed the file or link the file.
2. Place your mouse cursor where you want to create the object
3. From the Ribbon, under the tab Insert, within the group Text, click Object. The object dialog box appears.
4. From the dialog box, click Create from File.
5. Click the Browse button to locate the file in your system.
6. Select the Display as icon check box.
7. The object icon is created at the cursor position. This way you can embed a file into your document.
8. If you want to link the file, also select the Link to File check box.
Difference between embedding and linking an existing file
If you want to update an embedded file, you have to double-click the object to open the file and then edit. Updating the source file will not update the embedded file.
However, if you are linking an existing file, then changes in the source file will be reflected in the linked file.