Writing a novel with Microsoft Word is done today using styles for document formatting. Not local formatting, but rather style formatting. Formatting your novel with styles is the preferred way in which editors, publishers, and InDesign, the Adobe Creative Suite eBook markup software, like to receive the file.
Simply, a Style in Word is a whole set of formatting instructions that you can save and re-use again and again. Not only that, but if you assign styles to the elements of your text you want to look different from the main body text, you can change all of them at once by simply changing the style definition. The Book Designer, Using Styles in Microsoft WordNovels have certain manuscript formatting conventions widely accepted in the publishing industry. Such matters as line spacing, indentation, and margins are standard. Any Word document template for novels should be manuscript formatted using style formatting.
Here is a link to a Standard Manuscript Novel Formatted with Styles in MS Word you can download and add to your Word templates.
This template takes the novel manuscript formatting rules and provides you with a Word template using styles for formatting. It includes:
NavPane/Document Map integration
1″ Margins standard
Widows/Orphans turned off
Title Page set up w/o numbering
Header in all caps w/ page number (header differs from the WD book’s example slightly, but is easy enough to change if you don’t like the way I’ve done it.)
Each new chapter starts on its own page, one-third of the way down the page. (This works only if you use the style HEADING 1 for the Chapter titles.)
New paragraphs in both Heading 2 and Normal styles indented 5 spaces.
Entire text double-spaced or at least separated by 1 pica, yielding consistent number of lines per page.
Can put notes in the author-only notes within the text that you can easily find and remove in your subsequent drafts.
The provider of this template at the download link credits the original template design to Bill Womack of Words for Writers. He has included this video tutorial on how to use it: