Hi, Andrew,

Okay, I've tracked this down to the dataset (1) having single segment items and (2) those that have zero quantities and still display on the report have not been selected for a location. It is not limited to datasets having one location only and multi-segment items don't exhibit the problem.

Am reporting this to R&D. Thanks for bringing it to our attention and providing the data so we could track the issue down.

In the meantime, if you want to effectively suppress those 0 quantity items from the Physical Inventory report, select Edit | Locations and Add 'All Items' to the location.