When the discount reports are run, discounts for products that are marked as inactive appear on the report.
There are two causes. The first is that the SQL in the reports are setup to not filter by the products' active status.
The second is that on some of the reports, for example the Discounts by Customer - Active, the SQL of the report what fixed but the Data Source properties in the reports' configuration file (.xml) was not, and this is what's used by SWCS. The actual SQL is only used by the Solatech Report Writer.
There is no known workaround at this time.
The reports needs to be made consistent, in both the report SQL and the configuration file.
The discount reports were fixed with version 4.2.0.253 which was released with update SU080711.