On an expense

On Add Expense, Add transfer is a switch under the split. It is not the standalone transfer form.

Turn it on, then choose a merchant. You can pick that merchant’s branch, or skip it. See On a transfer. One SUBMIT saves the expense and that merchant payment together. The amount is what you paid on the expense.

This records where your payment went. It does not settle what other people owe you. For a payment between people, use Record a transfer.