1. Navigate to the Tax Functional Matrix window (Brazilian Oracle Purchasing: Setup > Tax > Functional Matrix).

2. Enter all combinations of Establishment Type (assigned to your company location), Contributor Type (assigned to your supplier site), and Transaction Nature (assigned to the item or service). Each combination must be unique. The descriptions appear in the bottom of the window after you enter the information.

3. Check the IPI Apply check box to apply IPI tax.

4. Check the IPI Tax Recoverable check box if the IPI tax is recoverable and the IPI Apply check box is checked.

5. Enter the IPI tax rate (percentage of recoverability). The rate must be between .1 and 100.

6. Check the ICMS Tax Recoverable check box if the ICMS tax is recoverable and enter its rate (percentage of recoverability). The rate must be between .1 and 100.

7. Check the Compounded Base check box if the ICMS tax has its base amount compounded with the IPI tax amount.

8. Save your work.