Make the report layout based on your type column, then add a subsummary object when sorted by system name.
Since your S/N column seems to be the 1-1 relationship, you can just display those fields inline.
I only use portals on reports as a last resort. Your report seems easy to just accomplish as a list view from the right context.
You can even use the "Go to related records" script step to get to your report from the systems table, saving you from having to script the query for the report.
Thank you, yes I do want it as a list and not have the portals on the report. I will try your what your recommended.