QB Issue Resolution:

You are correct a transfer from bank to bank is not an expense and is shown on the balance sheet, in the same QB company

From one company to another, it depends.  (you can NOT use transfer from one company to another regardless, transfer only works within the same company)

If you are a sole proprietor or partnership for taxes, then the money you take out of company 1 is an equity draw, and an equity investment in company 2 – IF, if company 2 is also a partnership or sole proprietor

Resolution for Issue 'How should I Transfer Funds between bank accounts that are in different QuickBooks sessions? I assume this should not appear on the P&L, just the Balance Sheet?' available: Yes (Solved).
Source: Intuit Community forum.

How should I Transfer Funds between bank accounts that are in different QuickBooks sessions? I assume this should not appear on the P&L, just the Balance Sheet?: 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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