Use of workbook as Template

Can anyone tell me why if I save a workbook as .xlt & then open it, put data in & save the new file it always suggests the old name as a .xls but with a "one" tagged on the old name. What happens the next time - & the next - & the next?

e.g template is records.xlt
then first record is records1.xls
& next is records1.xls again etc.

Thanks ( 2nd post - sorry for error )