Ok, so the answer is that you want to exclude this one item completely.
In theory it seems easy but it might actually be a bit tricky.
The report is using InventDimPhys Query in AOT.
Locate the query, expand the data source properties, go to Ranges. Here you could add a new hidden range for ItemId, excluding the item that you don't want to show. But this report already has a visible range for ItemId. If you have two ranges for the same field, they are considered as "OR", not "AND", so your range would not work. You can test it yourself.
Another option would be to modify Classes\InventDimPhysDP\processReport, and modify the query in x++ before it's sent to InventSumDateEngine class. You could check if the query data source has a range for ItemId.
If it doesn't, you can simply add your range to the query.
If it does, you need to enhance the existing range. As mentioned, adding two ranges for the same field are considered as "OR", but if you use "expressions in query ranges", you can achieve two "AND" conditions in the same field: docs.microsoft.com/.../using-expressions-in-query-ranges
I think this is how you can fulfill the requirement.
