This senario is related to intrc billing, The billing block on order line item then after that line item has been captured into the T.Code VF04 for billing .Even after the cancel theintrcomp invoice system again rebill that Item. As per the concept it should not come into that report.
How the billing block Item will not come in VF04.
If the billing block is in the item level, I think it will pick up in VF04. Try with No Docs with billing block box checked in VF04.