When you find an error in a Xero invoice or bill, your first instinct is to get rid of it. But choosing between “Delete” and “Void” isn’t just a matter of preference—it’s a critical decision that impacts your audit trail, financial reporting, and bank reconciliation. Making the wrong choice can lead to confusion and cleanup headaches down the line.
This guide provides a clear, status-based framework for when to delete, when to void, and when a credit note write-off is the correct accounting treatment.
Who This Is For: Small business owners, bookkeepers, and accountants who need to correct sales invoices and supplier bills safely without compromising the integrity of their financial records.
Your action is determined entirely by the document's status.
Delete only if the document is still a Draft or Awaiting Approval. At this stage, it hasn’t posted to your general ledger, so removing it is a clean, simple fix.
Void if the document is Awaiting Payment (Approved). Once approved, a document becomes part of your official record. Voiding removes its financial impact from reports but preserves a record of the transaction for the audit trail.
Remove Payment, Then Void if the document is Paid. Xero prevents you from voiding a paid document. You must first remove the payment to unlink it, which also returns the bank statement line to your reconciliation queue.
Write-Off with a Credit Note if the invoice is uncollectible. If you’ve recognized the revenue but won't get paid, a credit note to a Bad Debt account is the correct accounting procedure. This keeps your revenue and tax reporting accurate.
Document status | Invoice action | Bill action |
Draft | Delete allowed; removes from AR completely | Delete allowed; removes from AP completely |
Awaiting approval | Delete allowed; still pre‑approval | Delete allowed; still pre‑approval |
Awaiting payment (approved) | Void; keeps audit record, removes from AR | Void; keeps audit record, removes from AP |
Paid | Remove payment, then void to maintain integrity | Remove payment, then void to maintain integrity |
To Delete a Draft or Awaiting Approval Invoice:
Navigate to Business > Invoices and find the invoice.
Open it and click Options > Delete.
Confirm the deletion. The invoice is now completely removed.
To Void an Awaiting Payment Invoice:
Open the approved invoice.
Click Options > Void.
Confirm the action. The invoice status will change to "Voided," removing it from your Accounts Receivable balance but keeping the record for audit purposes.
To Handle a Paid Invoice:
Open the paid invoice.
Click the “Less payment” link to view the payment transaction.
Click on the payment date to open the transaction details.
Select Options > Remove & Redo. This critical step deletes the payment application and returns the original bank statement line to your Reconcile screen.
Navigate back to the invoice (its status will now be Awaiting Payment) and follow the steps above to Void it.
The process for bills mirrors that of invoices.
To Delete a Draft or Awaiting Approval Bill:
Navigate to Business > Bills to pay and open the bill.
Click Bill Options > Delete.
To Void an Awaiting Payment Bill:
Open the approved bill.
Click Bill Options > Void.
To Handle a Paid Bill:
Open the paid bill and click the payment link.
In the payment transaction, select Options > Remove & Redo.
Return to the bill (now Awaiting Payment) and use Bill Options > Void.
While voiding removes an invoice from your books, it implies the invoice was never valid. If the invoice was valid but the customer will never pay, the correct accounting treatment is a write-off.
Why it Matters: A write-off properly matches the bad debt expense to the period in which you determine it’s uncollectible, preserving the accuracy of your revenue and tax (GST/VAT) reporting.
How to Do It: Create a credit note for the customer and code it to a "Bad Debts" expense account. Apply this credit note to the outstanding invoice to close it out.
Voided documents cannot be undone or edited. They are permanently retained in Xero with a "Voided" status to ensure a complete and transparent audit trail.
You can find voided documents. In the Invoices or Bills screen, go to the "All" tab. Voided documents will be listed there.
Always check the History & Notes. At the bottom of any transaction, you can see a log of every action taken, including who voided it and when. This is your primary source of evidence for any changes.
Voiding When You Should Write-Off: This is the most common high-level mistake. It can misrepresent your revenue and AR turnover. If the sale was legitimate but the debt is bad, use a credit note.
Trying to Delete Approved Documents: Xero intentionally blocks this to protect your ledger’s integrity. If "Delete" isn't an option, it's a sign you need to void instead.
Forgetting to Remove the Payment First: If you try to void a paid document, Xero will stop you. This often leads to confusion. Remember the sequence: remove the payment,
By following these status-based rules, you can keep your Xero ledger clean, accurate, and audit-ready, ensuring every correction is handled in the safest and most compliant way possible.