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In this video tutorial, Ben from Action Step explains how calculated merge fields work in the system. These fields can be created using PHP coding language and can range from simple to complex based on your PHP knowledge. Calculated merge fields can be very useful, even with simple codes. To create a new calculated merge field, go to admin document templates, click on the list of merge fields, and then create a new one by giving it a name and description. The calculation code is where you enter the PHP code for the merge field. You can test the calculated merge field by searching for a record in the system.