Check the boxes as shown above. Enter the cost, default taxes, descriptions, accounts, and price you sell the item for.
Now go to our application under Admin > App Center > Xero and re-sync the products and services from Xero:
Head on over to your inventory in our application and create a new inventory item that matches the one you created in Xero. Make sure to map your Xero item to it:
Once you've done that, create your invoice and take your payment within the app. Make sure both synced to Xero, and voilà! Your Cost of Goods Sold now appear in Xero:
Note: You will need to track and manage inventory in Xero for the above to work properly. If there is no inventory in Xero for the item, the invoice won't sync over into Xero. You can manage this by creating purchase orders in Xero.