No it doesn't. Look at the K-1 codes in the instructions. The field for that in individual module is wrong. Has been discussed here but since the search function sucks I can't find it.

 I think this will take you to the thread where it was discussed earlier.  -https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/re-why-is-the-gross-incom...

Gush 1120 S K1 Line 17 AC? what is up with this?  this is wrong and still not resolved. Customer service is not responding at All?  is anyone know how to clarify.

The K-1 is correct.

Don't enter it in the 1040 as SE income.