when the user is creating the new report the report is not found under the Activity folder.But Admin can see the report .
Can any one please say what would be the issue.
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That's not a "standard" report; it's based off the custom metadata of your organization. Either the user in question doesn't have access to the Latest Aging Summary object (perhaps because it's in a Development status, or doesn't have at least read access to the object), or doesn't have access to the field that relates this custom object to the custom object. Check the profile settings under Object permissions, and also check the custom object's deployment status.