When generating inventory worksheet I am receiving fallowing error. Invalid input. “Fractional quantities are not allowed.”

.Any fix for that?

That's highly unusual. 

Did somebody play around with the I/C Options on the back-end database?

What does data integrity check on I/C show?

Data integrity is clean. So far detected that worksheet generation stops on one item.

Then you're going to have to edit ICILOC with a database editor, and remove the fraction.

I encountered this once and the fix is as Jay says, the item has a fractional qty in ICILOC. Remove the fraction and the problem goes away.

Any tips how to remove fractional quantities? I am looking on table and do not see any difference between that item and any other item. What exactly I am looking for?

You are looking for any fraction in the quantity on hand field, for example 1.01 or 1.00001 instead of just 1. Keep in mind that what you see may be rounded to x decimal places, so 1.00001 could be displayed as 1.00

You could run an SQL update query to set the to whole number, or try entering the whole number in the database editor.