Forum Discussion
Saving Word templates in OneDrive for team to access but when opened forces to create a new document
As far as I am concerned, the situation you face is something that has not been properly worked out by Microsoft.
Where are you team members located? Best if they can access a file share on your company network.
While you should be able to save a .dotx file to a folder on OneDrive, when a user clicks on that file in OneDrive, the file opens, rather than a new document being created from it (as happens when the file is located on the local drive) and it is not possible to edit the document on One Drive (which is probably a good thing). On the other hand, if the user clicks on Open in Desktop App, once again, it is a copy of the template that is opened, rather that a new document being created from it. If the user edits the document and then clicks on Save, the edits will be saved to file on OneDrive, which almost certainly is not what you want to happen.
There maybe something in the following that is of use to you, but my opinion is that it is a lost cause: