Setting up Inventory Organization, Items (Assets),Item type and status for Equipment Leases?

Hello

I was referring to Oracle PN Implementation Guide and it mentions that it is required to setup Inventory Master  Organization, Items (Assets),Item type and status for Equipment Leases?

We currently do not use Inventory Organization for Corporate but it is licensed product so we can set this up but wanted to confirm if this is indeed a Required setup for Equipment Leases?

i.e we have to first create the asset as Inventory Items with Equipment Item type and Lease Status and then reference them as a Lease in Equipment Leases html form.

Why can't we just create directly as an equipment lease and what will be the repercussion from that stand point?