magic keyboard numeric volume keys not working

Just connected the new magic keyboard with numeric keypads and none of the top row keys function. The volume control (f12) wipes the screen away.

There is no "Use F1, F2, etc., as standard function keys" in my keyboards preferences. Everyone keeps suggesting that but I don't have it. Yes I have the latest OS El Capitan 10.11.6

I found in the preferences to adjust the screen brightness but there is nothing for the volume! Please help.