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Need help understanding this 1:1 post from CRM Tip of the Day

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I need this solution, but I'm a bit confused with the instructions:

http://crmtipoftheday.com/2014/06/25/create-a-11-relationship/

It says to create a 1:N and N:1 relationship between the two entities.  Doesn't this already happen by default?  And it says to create a lookup on both "entities."  The child entity already has the lookup by default when you create this.  SO, I used that one and created one on the parent back to the child.

The workflow to populate the lookup from the parent to the child is my problem.  I assume you should be populating the parent with the PK from the child, but I can't see it in the workflow on create of the child. 


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