Required; found on the Inception tab. Check the box if the lease agreement conveys ownership to you at the end of the lease term. If you check this box, the lease is finance (and if not a land-only lease, is depreciated over its economic life). If you user-classify the lease operating, this box cannot be checked.
For GASB 87, a lease with ownership transfer is considered a financing, rather than a lease, and is to be reported with owned assets.
GASB 87, paragraph 19:
19. A contract that (a) transfers ownership of the underlying asset to the lessee by the end of the contract and (b) does not contain termination options (see paragraph 12), but that may contain a fiscal funding or cancellation clause that is not reasonably certain of being exercised (see paragraph 13), should be
reported as a financed purchase of the underlying asset by the lessee or sale of the asset by the lessor.