Back ordered items coming from sales orders with payment holds are not reflected in the Inventory Back Order Report

Although the status of the Sales Order is Pending Fulfillment, it is still considered under the Approval stage if a Payment Hold is placed on it.  Orders On Hold cannot be fulfilled.  The next step is to review the order and determine what action to take before it can be considered in the Inventory Back Order Report.   This holds true with the Sales Back Order Report (Reports > Order Management >  Sales Back Order Report).