In your Adwords account:
Step 1) Adding the code to the final URLs.
(The lp part stands for landing page)
If you need an example, Kendra goes over step by step (skip to around 13:50):
https://www.youtube.com/watch?v=2Q2KceDex4s&feature=youtu.be
Step 2) Link your Adwords and analytics accounts. Here is a guide from google: