Go to Services / DNS, check on activationcheckbox, set forwarding servers(optional) and click apply.
To create a local domain, go to Local domains menu and click Add.
Set the name to domainname and description and click add.
To add sub-domains or entries, select your domain and click add button.
In the next screen, check on sub-domaincheckbox and set sub-domain name. Check on internal / externalcheckboxes, select type of entry and set the target. Click add button to create your sub-domain.