How to Write Off Unpaid Invoices in Xero
- George Apostolov
How to Write Off Unpaid Invoices in Xero: step-by-step guide
On Xero's main dashboard, head over to the top menu bar and click 'Business'.
Select 'Invoices' from the list of options.
After that, tap the 'Awaiting Payment' tab to proceed.
Find and open the unpaid invoice you want to write off.
Subsequently, click the 'More Options' button in the top-right corner.
Pick 'Create and Apply Credit' from the choices.
Once done, review the details and click 'Approve' or 'Save'.
After completing these steps, the unpaid invoice from your Xero account will be written off instantly.
Quick answer: 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.
About this Xero tutorial
Write off unpaid invoices in Xero by creating and applying credit to awaiting payment bills. Review and approve the details to complete it instantly. This guide shows how to write Off Unpaid Invoices in Xero in 8 steps, starting with "On Xero's main dashboard, head over to the top menu bar and click 'Business'" and finishing with "After completing these steps, the unpaid invoice from your Xero account will be written...". The interactive demo above is a click-through copy of the real Xero interface, so you can rehearse each step before doing it in your own account.
Frequently asked questions
How many steps does it take to write Off Unpaid Invoices in Xero?
8 steps. Each one is listed in order above, and the demo highlights exactly where to click.
Can I try it without changing my own account?
Yes. Clicking through the demo doesn't touch your Xero data or settings. Once you know the flow, repeat it in your own workspace.
This tutorial is filed under Xero. Related guides: Connect Xero to Airtable Using Zapier, How to Activate Cash Coding With Standard Permission in Xero and How to Add a Bank Account in Xero. Last reviewed 05 Oct 2026.
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