If you have it on hand and need to track it as I described, for internal purposes, the "not as sales" means never Selling it. It isn't a question of the setup. It's a question of how you use that in transactions.
If you want to use Noninventory, then never set it up as Sold or "reimbursed." It can be an Expense item only. That isn't the same as tracking inventory for internal purposes only. The point of tracking anything as inventory is because it is on hand of significant value over time, and not already gone = cannot take it as expense.
Example: I buy 50 different Saw Bladed for that machine shop and they run $1,000 each and will last a year or two, but you never know when you would break one, so you want enough on hand to keep operating. You never sell them to customers, but your tool crib manager needs to manage them, get them on hand, keep a minimum level, and the IRS doesn't permit you to report these as Expense when they are still on the shelf. They are an inventory asset.