why is there no tax on rev commits?

AI generated answer (using internal Slack threads):

In NetSuite, there is no tax on revenue commitments because the tax is typically applied at the transaction level, not at the revenue recognition level. When a transaction such as a sales order or invoice is created, the tax is calculated based on the tax code and rate associated with the customer and the items on the transaction. When revenue is recognized through Advanced Revenue Management (ARM), it is based on the revenue arrangement, revenue elements, and revenue plans that are created from the original transaction. These records do not include tax because they are focused on recognizing revenue over time, not on calculating or collecting tax. The tax is already accounted for on the original transaction, so there is no need to include it on the revenue commitment. This is why you don't see a tax line on the revenue commitment. Remember, the revenue commitment is a legacy feature and is not being offered anymore. NetSuite's revenue recognition solution is now ARM. Even if you are using the Basic Rev Rec, it is still ARM feature-wise, you just don’t enable the other bells and whistles. If you are using subscription-based billing and most of your items post directly to revenue without a revenue recognition schedule, you might experience an increase in the number of journal entries and a delay in revenue recognition with ARM. This is because ARM creates revenue arrangements, elements, and plans for all items, even those that post directly to revenue. To avoid this, you can define an item as direct posting in ARM. However, you cannot mix items that are being deferred with items you want to recognize immediately on the same transaction. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******