Microsoft and Facebook have announced Docs for Facebook, an application that allows users to use Word, Excel and Powerpoint online. Currently, the Docs is in beta and you will need to go to to sign up.

Microsoft and Facebook have announced the launch of Docs for Facebook, an online applications platform beta that lets Facebook users create and share Word, Excel and PowerPoint documents. The announcement coincides with the start of Facebook’s F8 conference in San Francisco, where the social networking company is emphasizing the increasingly social and collaborative nature of the Web.

The launch represents yet another escalation in the cloud-based productivity arena, where Microsoft finds itself in competition against Google and a growing host of smaller competitors.

Users can navigate to and log in using Facebook Connect. From that point, a variety of options present themselves: Users can view documents being shared by their friends, or else create or upload a document. Once a document’s been created and edited, it can be shared with any Facebook friends selected via an interface on the right-hand side of the screen. The application also includes granular controls for which friends can edit a document.