Where should the Security Deposit be posted?

A security deposits is not typically recorded unless it is non-refundable per FASB ASC 842. 

Since refundable security deposits are not considered part of lease accounting under ASC 842, they are not included in Crunchafi Lease Accounting. 

In the event the security deposit is non-refundable, it is considered a fixed payment (no different than other fixed payments). In this case, enter it under Step 2: Lease Payments & Classification when adding a lease. When this is done on the same date as the lease start date, it will not affect the Lease Liability, but it will affect the ROU Asset.