Void an invoice that has a credit note allocated: a guide for Xero users

You want to void an invoice, but a credit note is allocated to it, and sometimes a prepayment or overpayment too. The allocation has to come off first. This guide covers why, how to do it by hand, what to decide about the credit note afterwards, where the manual way stops being practical, and what Unapprove does with these documents.

Checked against Xero Central on 23 October 2026.

Why the void will not go through

Xero's rule is that you can only void an invoice that is awaiting payment (Delete or void an invoice). A credit note that covers what is owing leaves the invoice fully paid (Common scenarios for credit notes), and Xero says that removing the allocation puts the credit note and the invoice back to awaiting payment (Remove a customer credit note allocation). Xero's pages quote no error message for this, so read it as the documented rule. A part-credited invoice follows the same route: allocation off, then void.

Is a void what you need?

If the credit note was raised to cancel this invoice, it has already done the job. For an invoice you have sent, Xero's advice is a credit note, so there is an audit trail. Voiding as well means taking the credit off, leaving the credit note nothing to cancel. If it covered only part of the invoice, the invoice is probably right and should stay. Void only when the invoice should not exist at all, and ask your accountant first if it has gone to the customer or sits in a reported period.

The native way, step by step

1. Look at what is applied. Open the invoice and note every credit note, prepayment, overpayment and payment against it. One credit note can be spread over several invoices, so note the amount for this one.
2. Check the lock date. After a lock date is set, users can't add or edit transactions dated on or before it. Compare the invoice and credit note dates with it first. An administrator can remove the lock date temporarily, but that is a decision about your books (Set up or remove lock dates).
3. Remove the credit note allocation. Open the credit note from the Awaiting Payment or Paid tab, click the remove icon next to the amount allocated to this invoice, then click Delete. Only an approved credit note can be allocated (Create and approve a customer credit note).
4. Remove any prepayment, overpayment or payment. For a prepayment, open it and click the remove icon next to the amount credited to the invoice (Edit or void a customer prepayment). For an overpayment, open the invoice, click Overpayment and use the remove icon. For a payment use Remove and Redo (Delete an invoice or bill payment).
5. Void the invoice. It should now read awaiting payment. Open it, click the menu icon, select Void and confirm. Xero says to change the number before you void if you want to reuse it.
6. Decide about the credit note. It is available again. Apply it to another invoice, leave it as credit for the customer, or void it if it only existed to cancel this invoice (Delete or void a customer's credit note).

Bills follow the same order: remove the allocation on the supplier credit note (Remove a supplier credit note allocation), then void. Xero lets you void several awaiting payment bills at a time (Delete or void a bill).

Where the native way runs out

• One invoice at a time. Xero says awaiting payment invoices can't be voided in bulk, and every allocation is removed on its own. A large batch means a removal and a void for each invoice.
• Each credit is a separate removal, in a different place: credit notes, prepayments, overpayments and payments.
• A removed payment can't be restored. Xero's warning is that you recreate it if Remove and Redo was a mistake. The bank statement line stays, ready to reconcile again.
• Voids are permanent. Voided invoices can't be reinstated.
• You keep the record. Without a note on both documents, nobody reading the credit note later will know why its allocation went.

The faster way: Unapprove

Unapprove is a web app that works with Xero. Its plain unapprove and void runs skip an invoice or bill that has a credit note or prepayment allocated. The preview lists each one with the reason, and nothing is written to it (why, which explains the same family of skips for payments).

Remove payments and void. This separate run does the steps above for a selection. Choose it, set the status filter to Paid or Any status (a fully credited invoice reads as paid), select the documents and preview. For each document it:

• reads every payment and credit first, and writes nothing until each has been judged;
• removes unreconciled payments, then the approved credit note allocations, reading each removal back from Xero;
• voids the invoice or bill and reads it back;
• adds a history note on the document, and a note on each credit note saying its credit is available again.

What it leaves alone, and tells you why: reconciled payments, batch payments and prepayment or overpayment allocations. A document with one is skipped whole, not half done. The credit note itself is not voided, so step six above is yours. You confirm by typing the count, for example VOID PAID 40. The guide to voiding many invoices with payments covers the payment side.

Documents dated on or before your lock date (why) and documents for an archived contact (why) are skipped too.

What access it asks for: your name and email to sign you in, read and write on invoices and bills, read and write on attachments, and read-only on organisation settings and contacts. The payments permission is requested only when you choose "Remove payments and void".

Price: free for 14 days, with unlimited previews and three documents processed in total. After that, $29 per month per connected organisation, or a one-off $49 Clean-up Pass for 7 days and up to 500 documents. Prices are in US dollars and exclude VAT and sales tax (added at checkout); the pricing page has the details.

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