Dear Sruthi
are we talking about the "special" status check box on generation variant level? PLease in a first step: don't chec this "Checkbox" (this is special and in normal cases not needed)
1.) if template is released
2.) you should able to create the report (may be check su53; may be there might be an access problem)
3:) Don't use "Released" as the initial status. Better is to used "Ready"
C.B.