What does it mean when ROU Asset Life is greater than its Lease Term?

The ROU Asset Life typically matches the Lease Term however, for finance leases in which the lessee is reasonably certain to exercise an option to purchase the underlying asset, the ROU Asset Life is the useful life of the asset (i.e., the period for which the asset will be available for use), which may be longer than the Lease Term. The ROU Asset is amortized to expense over the ROU Asset Life. The system requires a Fixed Asset GL Account to be entered on the GL Accounts tab of the “Add Lease” or “Edit Lease screen”.

The purchase price should be reflected in the Payment Stream section on step 2 - Lease Payments & Classification when adding the lease.