# Inventory and cost of goods sold

**Category:** [Accounting](https://help.totalctrl.app/hc/totalctrl/totalctrl-help-center/en-US/categories/accounting)
**Updated:** 2026-08-19

Track stock and let TotalCtrl handle cost of goods sold automatically using **weighted-average costing**.
## Add items

In *Accounting → Inventory*, add each product with a name, SKU and sale price. Use **Receive** to record costed purchases — quantity goes up and the average unit cost is recalculated; the purchase posts Dr Inventory / Cr Cash (or Accounts Payable).
## Selling stock

When you sell a stocked item — through a [recorded sale or Square import](record-sales-and-square) — quantity decreases and COGS posts automatically (Dr Cost of Goods Sold / Cr Inventory) at the current average cost. Your balance sheet shows the remaining stock value.

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## Related Articles

- [Payroll: connect Gusto or record runs manually](https://help.totalctrl.app/en-US/articles/payroll)
- [Sales tax: rates and the tax report](https://help.totalctrl.app/en-US/articles/sales-tax)
- [Accounting overview](https://help.totalctrl.app/en-US/articles/accounting-overview-1)
- [Create and send an invoice](https://help.totalctrl.app/en-US/articles/create-an-invoice)
- [Creating and Sending Invoices](https://help.totalctrl.app/en-US/articles/creating-and-sending-invoices)

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