How do I reclassify an item from Transfer to expense

Hi there, @njs2.

You'll want to delete the transfer transaction and create an expense. Ensure you use the account used in making the transfer when creating an expense. Let me show you how in your QuickBooks Online (QBO) account.

Here's how:

1. Locate and open the Transfer transaction.
2. Copy the details, click More and select Delete.
3. Then, go to the + New button.
4. Select Expense.
5. Enter the details copied from the transfer transaction.
6. Once done, click Save and close.

For more detailed information, check this great article for reference: Enter, edit, or delete expenses in QuickBooks Online

However, if the transaction is in your register, you'll want to delete it and add an expense transaction from there. You can refer to this article that provides detailed information on adding transactions in your register: Add transactions to account registers in QuickBooks Online. 

I'm also adding this great article can guide you accurately in reconciling your accounts in QBO: Reconcile an account in QuickBooks Online.

You're always welcome to post here anytime you have other questions. Take care and stay safe.