I set a rule to transfer certain withdrawals as a transfer to a Cash account. Some withdrawals were used as payments for expenses. How can I change them to expenses?

Good afternoon, @diane-ansuneagle. 

Congrats on making your first post here in the Community. Let me share some light on this subject. 

Sounds like you may be looking at the "Record as transfer" option page instead of the "Categorize" area to change it from a transfer to an expense. I can show you how to get there by using a few easy steps: 

1. Go to the Banking tab. 
2. Ensure that you're on the Banking portion of the page. 
3. Click on the bank you'd like to review. 
4. Press the For Review tab. 

       5. Tap on the transaction. 

       6. Hit the Categorize bubble. 

       7. Review and choose a different type of category in the field. 

From there, you can either click back on the transaction or Add to add it to the categorized section of QuickBooks. For future reference, here's a guide that can provide some more details: Categorize and match online bank transactions in QuickBooks Online.

This should do the trick. If you have any trouble along the way, don't hesitate to ask. Wishing you and your business continued success! 

Candice, 

Thank you for the quick reply and suggestions. However, since I set it as a rule, they were automatically moved from the bank account to a Cash on Hand account and did not need to be reviewed. I have disabled the rule now, but still would like to categorize some of them as expenses without them going through the Cash on Hand account. I did go into the bank account they came from and found them under the categorized tab with the option of Undo. I would like to verify if I select "Undo" they will go back into the original bank account as they were - is this correct? 

Thanks again for all of the help,

Diane

Let's make sure you'll be able to undo transactions if you're doing it incorrectly, diane-ansuneagle.

Generally, if you've matched transactions that we're manually created, they will only go back to the For Review tab. On the other hand, for those transactions that you've added, these will be deleted and goes back to banking. If you've matched a downloaded transaction with the wrong one, you can follow the steps to correct it. 

1. Go to the Banking menu or Transactions menu.
2. Go to the Banking tab.
3. Select tile for the bank or credit card account you downloaded the transaction from.
4. Select the Categorized tab.
5. Find the transaction you want to unmatch.
6. Select the blue transaction link in the Added or Matched column to see the matched transaction.
7. Select Undo from the Action column.

For more information on how to move the downloaded transactions to another account, I've added this for you: Unmatch Downloaded Bank Transactions Or Move them To Another Account.

Moreover, you may want to compare each transaction with the ones entered in QuickBooks to make sure that accounts and balanced and accurate. To do that, please go through this article so you'll be guided: Reconcile An Account in QuickBooks Online.

Let us know if there's anything else that you want in categorizing bank transactions. As always, the Community is always here to attend to all your needs.