Every transaction that you record manually by clicking the Add Transaction option will be labeled as a Manually Added transaction.
The Categorized and Matched come into picture when you have statement lines either by configuring automatic feeds or by importing statements into Zoho Books. When you match a statement line with an existing transaction, the transaction will be labeled as a Matched transaction.
If an uncategorized transaction doesn’t have a matching (manually added) transaction in Zoho Books, or if you do not wish to select one from those that are listed, you can instantly create a new transaction and associate it with the statement line by clicking the Categorize Manually option. Such transactions will be labeled as categorized transactions.
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