This article explains how to correctly input a shot hit out of bounds in the round entry process. A shot hit out of bounds incurs a 1-stroke penalty and you hit your next shot from the same position as your first one (penalty of stroke and distance).
Let's suppose we hit our first tee shot out of bounds right on hole number 1. We first input the shot details:
Distance from the edge of the fairway=50
The penalty shot that we add gets "attached" to the shot which incurred it (in this case shot #1; the scorecard is updated to reflect this penalty shot).
When we then input our next shot, we do that in "Shot #2" field, and we input the exact same distance as we had on the previous shot, in this case "439 yards". The scorecard updates to say that we now have played 3 shots (shot 1 has a penalty stroke attached to it).