Is it possible to edit a word/excel file online? or I have to download the file and do the edit offline then upload the file again.
much thanks
Yes!
You can review the documentation on editing Office files here:
https://confluence.atlassian.com/doc/edit-office-files-170494553.html
But I would always recommend to our Users that if this is happening regularly, then it is better to create the Word text in a page of its own as just text in the page edit zone, or the Excel file as a table in a page of its own, and just edit the page directly.
Page versions are automatically archived and has the automatic "track change" for the page i.e. who changed what.
Then if you still need a Word or PDF, use the ellipsis (three dot icon at top right) and choose Export to Word or Export to PDF
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