QB Issue Resolution:

How are you making the transfer?

the transfer command under the pl;us menu>other works just fine without hitting income
or
you can enter a check/EFT and use the other bank account as the expense for the payment

If you are using banking downloads to make your transactions for you, then that is a mapping issue you will have to figure out, the bank download is pointing to an income or other income account

Relying on banking downloads to make your entries is a misconception intuit advertising promotes, IMO.  You should be making the entries as they occur, and then you just match the download if and when you get it, or do a manual reconcile from a statement – 5 min max monthly.  Making entries as they occur is the only way to have an accurate current company financial file.

Resolution for Issue 'How can I stop transfers between our accounts showing as income and expenses?' available: Yes (Solved).
Source: Intuit Community forum.

How can I stop transfers between our accounts showing as income and expenses?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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