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In this video tutorial, the presenter explains how to delete and void invoices in Xero. Users can locate invoices using the search box or by navigating to the Business section and selecting Invoices to view all invoices. To delete an invoice, it's important to note that this can only be done for invoices that have not been sent to the customer. The example given shows how to delete a draft invoice by selecting the invoice options and confirming the deletion. Once deleted, the invoice will no longer be visible in the list, and users can reuse the invoice number for future invoices, although it will automatically increment to the next number in sequence.