Hi there, @shwimer.
I can help walk you through the steps on how to change the transfer transaction into expense in QuickBooks Online.
If this online banking and isn't yet in your bank register, you can follow the steps below on how to update the transaction.
- Select the Banking tab and click For Review.
- Locate and select the transaction to open it.
- Choose the Category drop-down list and select the new category from the list.
- Click Add to accept the new category and add the transaction.
The transaction is moved to the register and assigned from the For Review tab to the Categorized tab.
But, if the item is already in the Categorized section, you'll need to Undo to update the correct category.
- Go to the Banking tab on the left side, then choose your bank account.
- Locate the transfer transaction in the Categorized section.
- Hit Undo.
- Go back to the For Review tab, then find the transaction.
- Modify the Category to Expense.
- Complete the needed information, then tap Add.
For more details, check out this article: Unmatch or move bank transactions after reviewing them.
I've included these articles below about handling bank transfers and categorizing transactions in QBO:
Additionally, you can always visit our help articles page. This page contains steps for your future tasks like accessing different reports, customer/vendor data, etc.
Please know that I'm just a post away if you have additional questions about updating the bank category. Have a good one.