To create most of the items, especially those more complex, you will need a particular level in the Crafting ability.
Crafting can be done in the inventory tab, by dragging one item onto another - if they can be merged together, a window showing the result will appear, and if not - they will go back to their places in the inventory. They can also be bought from merchants and are rather cheap. An anvil with a forge can be found in every city and the tools are frequently found during exploration of the world. Some items can be created in any place, but some require an anvil/forge and tools. Many types of items can be crafted: food, potions, magic scrolls, books, armors, weapons, etc. Some of these products can be further used as ingredients.
Crafting in Divinity is based on merging two ingredients into one object.
