Sub ledger Customization- PO into Inventory

Scenario-

A Service company do not want Inventory to appear in its Statement of Financial Position.

The requirement is that they want to expense all inventory items as received but at the same time be able to track the items as inventory.

The Journal Entries are

DR Receiving Inventory a/c

CR Inventory AP a/c

DR  xxx a/c at Item Level Instead at Org Level 

CR Receiving Inventory a/c

DR Inventory AP a/c

CR Liability a/c

Then when Items are used-

We make a miscellaneous issue

DR Material a/c at item level

CR Material a/c at item level