Create an Office 365 Assignment
You can create an online assignment that embeds a document directly from your Microsoft Office 365 (OneDrive) folder. Accepted assignment types are Microsoft Word, PowerPoint, and Excel.
When students open the assignment, Office 365 will create a copy of the file as the student’s submission. Students can open the document and make changes per the assignment instructions. When they are ready to submit the assignment, they can return to the Canvas assignment page and submit the assignment. The copied document is also added to the student’s OneDrive folder for the course. You can also view each student's document copy in SpeedGrader for grading.
Submitted assignments are converted to a PDF to show the assignment at the time of submission. If students made any changes to their assignment, they will have to resubmit it for the changes to be visible in SpeedGrader.
Source: Instructure Community Forum
Log into your Office 365 account
Create your assignment template in a Word document, PowerPoint, or Excel workbook
Create an assignment in Canvas
Select External Tool in the Submission Type section
Click Find
Locate and select Office 365 Cloud Assignment
Locate the template you created, mark the checkbox, and click Attach File
Click Select
If you would like the tool to load in a new tab for your students, scroll to the bottom of the Configure External Tool window and mark the checkbox that says “Load in a new tab.”
Scroll down and click Save and Publish
