How can I use XLSFile entity during excel import?

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It’s not very clear from the documentation, but as far as I understand, I don’t need the XLSFile entity in order to import entity records using an excel file, templates work fine even without the “reference to import objects”.   So do I understand right that it is an optional entity, and excel importing process works fine without it? And if yes, what’s the purpose of this entity? Is it used for tracking the import activity (who, when, and using which file imported data)? How can I use XLSFile entity?
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Hi Maxim,

The XLS file entity is required only for exporting the data to Excel file and not required for Importing the Data. I know the documentation for even the import mentions it, but it shouldn’t. If you check out the Mendix Academy Lecture on Importing and Exporting Data, it doesn’t asks you to create the XLS entity for import https://academy.mendix.com/link/module/142/lecture/1222/4.1.1-Install-and-configure-the-Excel-Importer-Module

However, for Exporting data, this entity is must for holding the data before its written to the Excel sheet

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