Always double check automated formatting against the rules and examples provided in style manuals and guides.
Good referencing is one of the signs of good scholarship! A good reference also makes sure that you've included all the important information about a source, so that your reader can tell the difference between, for instance, two papers by the same author in the same year, or two books by the same title. When you know what to look for, it's easy to tell a journal article from a book chapter from a conference paper. A citation/reference organizes the individual elements (author, year, book title etc.) of a citation into a consistent form.