This is resolved. I used the following the report, otherwise it would only ever list unrated/neutral software.
Select Top 1000000 tblAssets.AssetID,
tblAssets.AssetName,
tblAssets.Domain,
tblAssets.Username,
tblAssets.Userdomain,
Coalesce(tsysOS.Image, tsysAssetTypes.AssetTypeIcon10) As icon,
tsysAssetTypes.AssetTypename As Type,
tblAssets.IPAddress,
tsysIPLocations.IPLocation,
tblAssetCustom.Manufacturer,
tblAssetCustom.Model,
tsysOS.OSname As OS,
tblAssets.SP,
tblAssets.Lasttried,
tblAssets.Lastseen,
tblSoftwareUni.softwareName As Software,
tblSoftware.softwareVersion As Version,
tblSoftwareUni.SoftwarePublisher As Publisher,
(Case When tblSoftwareUni.Approved = 2 Then 'Not Approved'
Else 'Approved or Unrated' End) As [Approved?]
From tblSoftware
Inner Join tblAssets On tblSoftware.AssetID = tblAssets.AssetID
Inner Join tblSoftwareUni On tblSoftware.softID = tblSoftwareUni.SoftID
Inner Join tblAssetCustom On tblAssets.AssetID = tblAssetCustom.AssetID
Left Join tsysOS On tblAssets.OScode = tsysOS.OScode
Inner Join tsysIPLocations On tblAssets.LocationID =
tsysIPLocations.LocationID
Inner Join tsysAssetTypes On tsysAssetTypes.AssetType = tblAssets.Assettype
Inner Join tblState On tblState.State = tblAssetCustom.State
Where (Case When tblSoftwareUni.Approved = 2 Then 'Not Approved'
Else 'Approved or Unrated'
End) = 'Not Approved' And tblState.Statename = 'Active'
Order By tblAssets.Domain,
tblAssets.AssetName