Вы не избежали всех кавычек.
Рабочая версия вашего заявления будет
SET @str_Query = 'SELECT SIM.Item_ID,
SIM.Item_Description,
SU.Short_Description AS Unit,
SIM.Std_Lead_Time,'
+ ''' '''
+ ' AS Last_Purchase_Rate
FROM FKMS_Item_Master AS SIM
INNER JOIN FKMS_STP_Units SU
ON SIM.Item_Purchase_Unit=SU.Unit_Id' +
' WHERE ' + @str_Condition +
' AND SIM.Location_Id =' + CAST(@aint_Location_Id AS VARCHAR(10)) +
' AND SIM.Item_Deleted =0
AND SIM.Approved_On IS NOT NULL'
+' ORDER BY SIM.Item_Description'
но я обнаружил, что с небольшим переформатированием ошибку легче обнаружить
SET @str_Query =
'SELECT SIM.Item_ID '
+ ', SIM.Item_Description '
+ ', SU.Short_Description AS Unit '
+ ', SIM.Std_Lead_Time '
+ ', '' ''' + ' AS Last_Purchase_Rate '
+ 'FROM FKMS_Item_Master AS SIM '
+ ' INNER JOIN FKMS_STP_Units SU '
+ ' ON SIM.Item_Purchase_Unit=SU.Unit_Id '
+ ' WHERE ' + @str_Condition
+ ' AND SIM.Location_Id = ' + CAST(@aint_Location_Id AS VARCHAR(10))
+ ' AND SIM.Item_Deleted =0 '
+ ' AND SIM.Approved_On IS NOT NULL '
+ ' ORDER BY SIM.Item_Description '