Physical Inventory Count

We are converting from a legacy system to PS9.2.  We planned to load business unit inventory items with an average cost (using perp avg) and zero on hand then use PS to schedule a physical inventory to load the counts of on-hand.  Using query we were going to balance to our legacy inventory.

However, in testing we are finding that none of the items come out on the physical inventory scheduled counting event.  What are we missing?  Someone thinks that it may have something to do with the fact that there have been no transactions and nothing exists on te CM_PERPAVG_COST table.  This makes no sense since ongoing, a new item could through error be put into an inventory location and there be no transactions.