It looks like Netsuite may need to correct their documentation on landed cost.  On the create landed cost item record help documentation there is a line that states the following:

"You can create an Other Charge item record called Freight, since freight is not an inventory item. On the Freight item record you create, the Track Landed Cost box is marked. Then, you can select the Freight landed cost item on the bill to track the freight expense as a landed cost."

Then a few lines below it states the following:


"Click the item type you want to create to track the landed cost.