How can you convert an expense to being classifed as a transfer? Tried from both Expense and Transaction unsuccessfully.

It's nice to have you here, framakiki-jounte.

I'll show you how to convert an expense into a transfer. You can follow the steps outlined below:

1. Go to the Banking menu.
2. From the Banking tab, click the Expense transaction.
3. Select the radio button for Record as transfer.
4. Click Add.
   

 You can check out these articles that can give some insight into reconciling process: 

• Categorize and match online bank transactions in QuickBooks Online

• Fix issues when you're reconciling accounts in QuickBooks Online

• Learn the reconcile workflow in QuickBooks

I want to make sure that you're able to get back to running your business as soon as possible. I'll be back around shortly. 

Thanks for the response.  Unfortunately, I don't see this because it has already been categorized, so it only shows up in the bank register (and does not let me edit the Expense field).  

Any other suggestions?  My other solution will be to just delete the transaction (so it does not show up as an expense).  

I appreciate the details that you gave, @framakiki-jounte.

I got you covered in categorizing your expense as transfer in QuickBooks Online.

You'll just need to undo the categorization of the transaction. This way, it will move back to the For Review tab and you'll be able to categorize it as Transfer afterward.

To undo the entry:

1. Open your QuickBooks Online account, then go to the Banking tab at the left pane.
2. Select Banking, then look for your account.
3. Click on the Categorized column.
4. Choose the item/transaction, then tap on Undo under Action.

I've added this screenshot for your visual reference.

Once done, you may follow the steps shared by my peer above to change the category.

If this doesn't work for you, you can delete the transaction and re-enter them with the right category.

You can always refer to this link if you need guidance about unmatching downloaded bank transactions and reconciling you accounts:

• Reconciliation Workflow
• Unmatch downloaded bank transactions or move them to another account

Click the Reply button below if you have other concerns with bank transactions. I'll gladly help. Keep safe. 

Thanks but unfortunately, the transaction does not show up in the categorized bucket.  I recently upgraded from Online to Simple Start (I wish I had not!!  Online is much easier to reclassify/edit items).  

I am now proceeding to delete the items and then manually re-enter them correctly.....:(