After fiddling around with the program, this is the solution which is not made clear except through a right click of the box in the liability smart worksheet. You need to add in the box before the amount of the liability in my case nonrecourse the letter "P" to have it divided by the percentage of profits for the partners. This then populates the SCH K-1 and K-1 reconciliation.
It is so stupid that the step by step does not have a module to incorporate the liabilities smart worksheet, how are users ever able to figure this out is too much.
