Inviting a new person into the workspace to take over the role of a virtual member

This is done via Settings > Members & Access Control > Member List: 

• Below the virtual member's name you'll see a link that says invite a new workspace member to fill this role.

• Clicking that link will bring you to the standard invitation page where you can issue an invitation to the new member.   If this new member will put you over your current paid seat count, you will be routed through the billing screen to purchase an additional seat before the invitation is sent.  
• When the recipient receives the email and completes the activation process, she will become an active member of the workspace.  All of the tasks that previously belonged to the virtual member will now be owned by the new member, and the virtual member will be deleted automatically. 
• Time entries that had been logged to the virtual member will still show in timesheet exports associated to that virtual member.

Transferring a virtual member's work to an existing member 

• In the Members List, click the Edit Profile link on the appropriate virtual member. 
• At the bottom of the profile click the "transfer all items to" button and choose the appropriate member from the list. 

• Confirm that everything transferred as expected, then go back to the Members List and delete the virtual user. 
• Time entries that had been logged to the virtual member will still show in timesheet exports associated to that virtual member.