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In this tutorial, Marcus explains how to change an invoice template in Xero. He begins by navigating to the "Business" section and selecting "Invoices." From there, he clicks the three dots on the chosen invoice and selects "Invoice Settings," which can also be accessed via "Settings." In the "Organization Settings," users can modify the invoice template. Marcus demonstrates how to create a new branding theme, where one can customize the title, terms, payment advice, and other details. Additionally, he mentions that if a standard template is already created, it can be edited without the need to create a new one, allowing for easier customization of invoice settings.