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In this video tutorial, Ben from Action Step explains how calculated merge fields work. These fields allow you to create new merge fields in your system using a coding language called PHP. The calculations can be simple or complex depending on your PHP knowledge. To create a new calculated merge field, navigate to admin document templates, search for existing merge fields to edit, or click a button to create a new one. Enter a name, description, and PHP code for the calculation. You can also search your system for a record to test the merge field. This tool functions similarly to the document merge testing tool.