Charm final states in deep inelastic scattering constitute similar to 25% o
f the inclusive cross-section at small x as measured at HERA. These data ca
n reveal important information on the charm and gluon structure of the nucl
eon if they are interpreted in a consistent perturbative QCD framework whic
h is valid over the entire energy range from threshold to the high energy l
imit. We describe in detail how this can be carried out order-by-order in P
QCD in the generalized (MS) over bar formalism of Collins (generally known
as the ACOT approach), and demonstrate the inherent smooth transition from
the 3-flavor to the 4-flavor scheme in a complete order alpha (s) calculati
on, using a Monte Carlo implementation of this formalism. This calculation
is accurate to the same order as the conventional NLO F-2 calculation in th
e limit Q/m(c) much greater than 1. It includes the resummed large logarith
m contributions of the 3-flavor scheme (generally known in this context as
the fixed-flavor-number or FFN scheme) to all orders of alpha (s) 1n(m(c)(2
)/Q(2)). For the inclusive structure function, comparison with recent HERA
data and the existing FFN calculation reveals that the relatively simple or
der-alpha (s) (NLO) 4-flavor (m(c) not equal = 0) calculation can, in pract
ice, be extended to rather low energy scales, yielding good agreement with
data over the full measured Q(2) range. The Monte Carlo implementation also
allows the calculation of differential distributions with relevant kinemat
ic cuts. Comparisons with available HERA data show qualitative agreement; h
owever, they also indicate the need to extend the calculation to the next o
rder to obtain better description of the differential distributions.