He was also found guilty of indecently assaulting a third recruit.
At the sentencing hearing today Captain Mathew Marinovich spoke as a character witness for Manning.
He said Manning had served in Afghanistan and East Timor and performed to a "high standard".
Manning was awarded the Distinguished Service decoration in the 2009 New Year Honours list because of an incident in Afghanistan where he intervened and halted a violent incident between two local police officers.
Captain Matt McGrath for the prosecution submitted to Judge Charles Blackie and a panel of five senior Defence Force military personnel that Manning should be dismissed from the army, demoted and serve four months in service detention.
The offences happened during training, mostly while Manning was on duty and in one instance, while drunk.
There was a "breach of trust" and he "flouted the rules" over a significant period of time, Captain McGrath said.
Defence lawyer Paul Murray said his client was "genuinely remorseful".
"He plainly accepts that what he did was wrong."
Mr Murray pointed to Manning's clean service record and distinction in the 2009 New Year Honours list.
"What he has done and what will follow will be a significant fall from grace for him."
He submitted a lowering in rank seemed inevitable, but the charges were not serious enough to warrant a detention sentence.
Judge Blackie and the panel have retired to consider sentencing.
