Inv Stock Stat by Item - see Credit Memo's only ??

I'm trying to modify the filters for the Inventory Stock Status by Item report in QB Basic to see only the items put back in inventory (returns from customers.)

I have two inventory accounts setup... regular and returns. Each part number is in both... except in Returned Inventory they all end in "R" We use a Credit Memo to put items into the Returned Inventory

For some reason... even though I "Filter" the Inventory Stock Status by Item report like...

Account: Returned Inventory Transaction Type: Credit Memo

The report still shows all Inventory items... for both the Regular Inventory account and the Returned Inventgory Account.

I would appriceate any help on this as we want to be able to run reports on both "new" inventory and "returned" inventory.

thanks - Will