In the upper part of the Create tab you decide how to classify and select the list. There is a number of alternatives you can use to classify and select.
Further down in the Create tab there are settings under the Show... heading to consider. Here you can select which part types you want to include in the list. To the right you can also select an inventory date, if the inventory should be made using the standard units and if the current balance should be suggested as inventoried quantity.