Mamba4Goat wrote:This may be a stupid question, but how exactly do you create them? I have an idea but I'd like to know in greater detail.

Thanks!
The basic premise is that if you send more out in trade than you receive back in a deal where you trade one player, you get a TPE back for the difference in that amount. For example: Team A trades Player 1 who makes $5,000,000.00 to Team B for Player 2 who makes $3,000,000.00, a TPE of $2,000,000.00 is created for Team A.
Where it can get complicated is when a deal looks like it is one deal, but actually structured as more than one smaller deal. Sometimes, it looks like a team sends an equal amount to what they get and a TPE is created. This is generally when the deals are broken down in to smaller deals. Sometimes this happens when teams are working around trade restrictions as well.
I recommend checking out the sections on Trades, TPEs, etc. in the CBA FAQ. Very informative, and just as important to me, easy to follow.