## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-fr/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How does auto categorization of bank transactions work?

You can see the auto categorization of bank transactions in action when you attempt to categorize an uncategorized transaction manually and there is no prior bank rule for that transaction category. Zoho Books prompts you with a Bank Rule creation page which would enable you to categorize similar transactions.

*   Go to the **Banking** tab and select your bank account.
*   Select the **Uncategorized Transaction** tab.
*   Click on the transaction you want to categorize and click **Categorize Manually** on the bottom of the right hand pane.

![Categorize manually](/books/kb/images/banking/categorize-manually.png)

Fill out transaction form on the right hand pane and click **Save**.

![Categorize transaction](/books/kb/images/banking/categorize-transaction.png)

Now you’ll be prompted to add a new rule.

![Rule prompt](/books/kb/images/banking/rule-prompt.png)

When you try to categorize another uncategorized transaction which fits the conditions of a previously created rule, the categorization form on the right hand pane is populated automatically.

![Auto categorization](/books/kb/images/banking/auto-categorization.png)

You can also add a new rule to categorize your transactions. Go to the _Banking_ tab and select your bank account. Select **Manage Trasaction Rules** from the **Gear** icon on the top right corner.

![Manage transaction rules](/books/kb/images/banking/new-rule.png)

Click the **New Rule** button on the top right corner and set the criteria in the New Rule form.

![Create new rule](/books/kb/images/banking/create-new-rule.png)