Hi Again
Nothing has changed when I run my item valuation report.
i do not have anything restricted or suppressed.
My item valuation report total when printed by category would add up all the category totals and would include the residual costs total. It does not include the residual costs now. Hence my original questions. Thanks for your assistance guys.

report criteria reads:
sort category code, location (all)
selection: items any account set
all category codes
all locations
options: include all quantities & costs
valuation at Actual cost
then recent cost
then selling price
etc
Show inactive items.