I’m having trouble understanding how to give a journal from the player’s inventory to an npc character during a conversation.

The way the quest is meant to work is that the player finds a journal and then must bring it back to its owner. The player speaks to the owner with the response “I believe this belongs to you”. At this moment the player is meant to give the journal to the npc character, and then at the very end of the conversation the quest needs to update. I don’t want the journal removed completely from the game; I just need it transferred from the player’s inventory to the targeted npcs.

So far I have quest stages and the dialogue setup, but the rest kind of eludes me, so if anyone can help, then I would greatly appreciate it. Thank you.

I think you're looking for this command;

SetObjectiveCompleted(#)
Alias_yournpc.GetReference() .AddItem(Alias_yourjournal.GetReference())

For more information, go to the Creation Kit website and search for "Bethesda Tutorial Quest Loose Ends". I think this is what it is titled. If not, just delve in to the other quest tutorial pages.

That worked! Thanks for the help Denmax. Also, that tutorial was a big help.