Overview (Defining the Tax Functional Matrix)
Use the Tax Functional Matrix window to enter Tax Recoverable ICMS, Tax
Recoverable IPI, and ICMS Compounded Base for different combinations of the
Establishment Type, Contributor Type, and transaction nature codes. You can also enter
whether or not IPI tax is applied. Payables uses the tax recoverable information
when generating invoice distribution. Both Payables and Purchasing use the
ICMS Compounded Base during tax calculation. Payables and Purchasing use the Tax
Functional Matrix setup to calculate IPI tax.
