Leatherworking

My attempts at leatherworking have met with failure; when I get leather(and a tool) and attempt to craft something, I'm told my character(at skill level 2--amateur, but not useless!)... doesn't know how to fabricate leather.
 

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crafting

Your known crafts:

Leatherworking: (fabricate <fabrication>)

strap, rawhide tie, braided lace, whip, sling, coif, helm, hat, headband, broad-brimmed hat, garb, pauldrons, cloak, mantle, hooded greatcloak, cape, cuirass, back sheath, backpack, apron, vest, sleeved vest, tunic, mizuda, satchel, bracers, gauntlets, gloves, belt, pouch, side sheath, breeches, leggings, skirt, braies, slippers, sandals, boots, ankle boots, shoes

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fabricate sling

You don't know how to fabricate things out of leather yet.

So... what am I misunderstanding here?

All you're missing is the actual fabricate ability, which is learned at level 4.

If you input 'abilities' you'll see a list of all your character's known abilities in each skillset. Under leatherworking, you'll most likely find that you only know Patch, Tan, and Prepare Tanning Solution. You can use 'ability <ability name>' to learn more about how to use it.

I didn't actually know about the 'crafting' command and agree that it seems to be a little misleading! 

Rakim, do you happen to know if tanning works to turn hunted hides/pelts into usable leather?

Sure does! You'll need a tanning rack and a container of tanning solution in order to do so.

EDIT: And some salt and oil, forgot about those. I think grease or fat can also work in place of oil. 'ability tan' can tell you more.