Answer
The deal will have no impact on the financial statement for that current year and so the sales manager is unlikely to reach her net income target. However, the deal will increase the net income in subsequent years, as the company provides its service and so the unearned revenue become revenue.
Work Step by Step
Net income is calculated from revenue-expenses. According to GAAP, accrual as opposed to cash accounting is to be performed. Hence, until a certain portion of service has been performed for the client, the money received from the deal is treated as unearned revenue, so is a liability that cannot be included in the final revenue for the year (and hence will not have an impact on the net income). The manager therefore cannot reach their end of year target off this deal.
