# How to Write Off Unpaid Invoices in Xero

> To write off unpaid invoices in Xero, go to Business, select Invoices, and open the Awaiting Payment tab. Find the unpaid invoice, click More Options, and choose Create and Apply Credit. Finally, review the details and click Approve or Save to complete the write-off instantly.

Canonical: https://livedemo.ai/tutorials/how-to-write-off-unpaid-invoices-in-xero/
Apps: Xero
Updated: 2026-10-05
Interactive demo: https://story-api.livedemo.ai/workspaces/62255d3d3304f17b8f5e2d03/stories/692a52dcab56e05a00000282/preview?step=1

## Steps

1. On Xero's main dashboard, head over to the top menu bar and click 'Business'.
2. Select 'Invoices' from the list of options.
3. After that, tap the 'Awaiting Payment' tab to proceed.
4. Find and open the unpaid invoice you want to write off.
5. Subsequently, click the 'More Options' button in the top-right corner.
6. Pick 'Create and Apply Credit' from the choices.
7. Once done, review the details and click 'Approve' or 'Save'.
8. After completing these steps, the unpaid invoice from your Xero account will be written off instantly.