This information was taken from the following sources: Microsoft Office--Automatically Format Bibliographies and Office--Create a Bibliography
Here is how you can insert citations into Word and format bibliographies using common formats, such as MLA, APA, and Chicago-style.
Add a new citation and source to a document
When you add a new citation to a document, you also create a new source that will appear in the bibliography.
For example, social sciences documents usually use the MLA or APA styles for citations and sources.
For example, your source might be a book, a report, or a Web site.
8. When you’ve completed these steps, the citation is added to the Insert Citation button, so the next time you quote this reference, you don’t have to type it all out again.
This information was taken from Jennifer Bost's blog. She is a tech writer for Microsoft.
APA style uses the author’s name and publication date. If you have multiple citations from the same author, there is a known Word 2010 bug where the citation generator fills in the publication title when it’s not supposed to. If this happens to you, here’s how to fix the problem:
1. In the Word document, click the citation.
2. Click the down-arrow and then click Edit Citation.
3. Click the Title checkbox and then click OK.
– Jennifer Bost
This information was taken from the following sources: Microsoft Office--Automatically Format Bibliographies and How to Create a Bibliography or Works Cited Page in Microsoft Word
Once you have created the citation, the citation is added to the Insert Citation button.
You can create a bibliography at any point after you insert one or more sources in a document. If you don't have all of the information that you need about a source to create a complete citation, you can use a placeholder citation, and then complete the source information later.
Note Placeholder citations do not appear in the bibliography.
4. If you add more sources to your document, you can easily update your bibliography—just click it and then select Update Citations and Bibliography.