Hello,

I just encountered the same problem you described and stumbled on a workaround (QB still needs to eliminate this issue, but until they do, there is this option).  Open the Journal Entry that's showing in unbilled costs by job, then (temporarily) change the account on the affected line to "Accounts Receivable" - this brings up the "Billable" check box, allowing you to UNcheck it.  Then, change the account back from "Accounts Receivable" to the original account you had for that line and save & close the journal entry.  That line will no longer be on the unbilled costs by job report.  Repeat for each affected line until the report is clear.  I hope this helps you!