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Tracking Mode in Time Tracker

Tracking mode setting controls how Time Tracker tracks the time. This option is located on the Group settings page. To see it, you must be logged in using an account having the manage_basic_settings access right (default Co-manager or higher roles).
Tracking mode can be set to time, projects, or projects and tasks on group settings page in Time Tracker
Tracking mode option on the Group settings page in Time Tracker

Three options are available in Tracking mode dropdown. Use time to track work time only. Use projects if you need to track time by projects. Use projects and tasks if you need additional breakdown by tasks.
Available tracking mode options
Available tracking mode options

Tracking Time Only

This is the simplest time tracking mode. You track work hours only. There is no concept of projects or tasks. This mode can be used where punch-in / punch-out machines are used. In this tracking mode, each time record has either a duration (as on the screenshot below), or a start and finish times. Use the Record type selector on the Group settings page to switch between duration and start / finish.
Tracking time only without binding time records to projects or activities
Tracking time only

Tracking Time by Projects

In this scenario, work time is logged against projects that you define on the Projects page in Time Tracker. For example, if you have Android app and Star Wars Game projects, one could log 4 hours against Android app project and 2 hours against Star Wars Game project.
Tracking time by projects without tasks
Tracking time by projects

Tracking Time by Projects and Tasks

In this scenario, in addition to projects we also have tasks. As a result, each time entry is logged against a specific project and a specific task. In the example below, 4 hours are spent while coding for the Android app project and 2 hours on design task for the Star Wars Game project. You can have multiple tasks allocated to each project.
Tracking time by projects and tasks in Time Tracker
Tracking time by projects and tasks

Time Tracker User Guide