The recovery rate usually works together with tax code in shipment line. The recovery rate is the percentage of the tax amount which can be charge to customer, e.g. VAT. Generally this part of tax amount will not go into cost account. For exmple, if you select tax code as 17% but don’t fill in the recovery rate, the PO line price is 100, the item cost will be 117; while if you select tax code as 17% but fill in the recovery rate as 100, the item cost will be 100.