How to Write Off a Bad Debt in Xero

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It is very easy to write off a bad debt in Xero. Here’s a short tutorial on how to do it in simple steps:

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1. On Xero's main dashboard, head over to the top menu bar and click 'Business'.
2. Choose 'Invoices' from the list of options.
3. After that, tap the 'Awaiting Payment' tab.
4. Find and open the specific invoice you already consider a bad debt.
5. Subsequently, click the 'More Options' button at the top-right corner.
6. Tap 'Create and Apply Credit' afterwards.
7. Review the credit note details one by one. If necessary, make certain modifications.
8. Once done, click 'Approve' to proceed.
9. After completing these steps, the Xero invoice you already consider a bad debt will be written off.