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There are two types of reports that can be created: Using an existing Template or a Free Format Report.
If you choose to create a Report using a existing Template, by cicing on select the list of all present templates will be opened. You shoild choose one, and click on OK after the Name and Source System are filled in too. After that the requiered parametars (Report Contents) must be filled in.
If you need to create a Free Format Report, choose the second option and follow the instructions about the Free Format Report.