It's working as designed for inventory assets not reflecting on a cash basis reporting, KederScreens. Let me add more details regarding this matter for clarification.
Once you pay your bill, that's the only time your asset value in the balance sheet report generated on a cash basis is affected. Bills will affect Accounts Payable (A/P) and Inventory Asset, whose value will be reflected when you run the report on an accrual basis. Although bill payment will affect your asset value, it's affecting the A/P and your bank rather than the Inventory Asset. It's why the bill amount shows on an accrual base inventory, while the payment isn't posted on the cash base inventory.
For additional information, refer to this article: Impacts of inventory tracking on the Balance Sheet and Profit & Loss reports in QuickBooks Online.
Moreover, you might want to scan this material for guidance on personalizing your report to display specific data that meets your business needs: Customize reports in QuickBooks Online.
Please add a comment on this thread if you have questions about running the balance sheet report in QuickBooks Online. I'll be around to provide relevant information to address any of your queries.
