How do I change a reconciled transaction that is labeled a bank deposit to become a transfer?

Allow me to help you change a transaction's status, jgurfein-thocpa-.

I'd also like to ask if transaction was downloaded from the Online banking section? If so, you can unreconcile it first, then tag it as a transfer afterward. Here's how:

1. Go to the account register and look for the transaction.
2. Proceed to the checkmark ✔ column.
3. Click the box with the “R” until the box is blank. This removes the transaction from the reconciliation.
4. Select Save.

Once done, proceed to the Online Banking section and undo the categorization. Here's how:

1. Go to the Transactions tab and proceed to the Banking tab.
2. Select the right account and go tot he Categorized tab.
3. Look for the transaction, then click the Undo button under the Action column. This will send the transaction back to the For review tab.
4. Select the transaction in the For review tab and select Record as transfer.
5. Click Confirm.

More details about managing banking transactions are also discussed here:

• How Do I View, Print, or Export a Reconciliation Report? 
• Unmatch Downloaded Bank Transactions or Move Them to Another Account

Please join us again in the Community if you have more questions for us. We'll make sure they're all taken care of.