Zero Suppression Not working in Bex Query with Formula Variable

Hi Friends,
I have a peculiar issue here. We upgraded from 3.5 to 7.0 recently. Some of our Bex queries have been behaving abnormally after this. In these queeries,
we have some key figures which use formula variables (ready for input and mandatory) in 3.5. User can enter either 1 or 0. The actual key figure is multiplied to the formula variable so, the entire column gets the actual key figure value if the user enters a value '1' and the gets the value 0 if the user enters '0' in the formula variables. Zero suppression is activated on the rows and columns and this report. This technique was used successfully to show/hide a column.
After upgrade, the same query works but, the zero suppression is not working. When the user enters a value of '0' in these formula variables, all the entries in the column for the key figure are displayed as 0 but the column is still displayed. It is like the zero suppression setting is not active at all.
I created one of those queries in Bex 7.0 to see if that works but, the issue still exits. Have anyone come across this kind of a scenario? Please get back to me if anyone has any idea on this situation.
Thanks and Regards
Subray Hegde

Which SP level are you at in BI 7? There is an OSS Note that would need to be applied if you're on lower than SP10. That note is:
[OSS Note 964756 - Formula variables with replacement from difference in BI 7.0|https://websmp130.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=964756]

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