Using a MIDI keyboard to input Motifs

[Almost Aviation]

What I am most interested in doing with the Motifs is to use them for simple fixed sequences, such as you can program on a regular hardware or software sequencer. The way I am doing this is to create a pattern in the pattern editor using type 'chromatic' and then entering the notes. It is laborious doing this with the knobs but I see you can also use a MIDI keyboard to enter the notes. This almost does what I expect except the recorded notes are transposed from what I play. When I have C selected as the key (the default) everything is transposed up by three semitones. I have found I can record the actual notes (almost) if I select the key to E-flat, in which case all the notes are transposed up by an octave.

I am guessing there is a 'musical' explanation for what is going on here, but is there an easier way to do what I want?