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I created a report which displays sharepoint list in SSRS using XML as datasource. I can view the report but i cannot create subscription in SSRS.

Here is the error

Subscription cannot be created because the credentials used to run the report are not stored, or if a linked report, the link is no longer valid.

1

This is because SSRS requires a Login to connect to the datasource to process the report when subscription will be occurring at its scheduled time. I would recommend you to store the credential securely into report server.

follow the instruction here.

https://alfordforney.wordpress.com/2011/01/04/ssrs-email-subscription-cannot-be-created/

http://parasdoshi.com/2013/08/22/ssrs-email-subscription-ssrs-subscriptions-cannot-be-created-because-the-credentials-used-to-run-the-report-are-not-stored/

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