The auto-categorise feature for account transactions rapidly reduces the amount of information you need to complete. This does not apply to Transfers, Allocated Items, or Scheduled Items.

To begin with, when entering an Account Transaction, enter all required information for all your Payees, including categories etc

When you have entered all payee information, when adding a new transaction, select the 'LESS' button on the Account Transaction dialogue box, this will allow you to auto-categorise based on entering just four pieces of information about the transaction.