This article explains the functionality and interactions of the following:
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The Can edit time setting in Settings / Users
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The Were you working? pop-up in the desktop app (controlled by the Time out after setting in Settings / Users)
The "Can edit time" setting
On the Settings / Users page, you’ll find a setting that controls whether users are allowed to add manual time and edit their existing time entries. It is called Can edit time.
If you allow editing time (set Can edit time as ON or as Approval needed):
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Users will be able to add time manually and edit time on the Edit time page.
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If the desktop app automatically times out due to inactivity (no keyboard or mouse activity) or if the user locks the computer screen or puts the computer into sleep mode, users will be able to add manual time using the Were you working? pop-up. We’ll explain this more in-depth below.
If you do not allow editing time (set Can edit time as OFF):
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Users won’t be able to access the Edit time page to add and edit time.
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If the desktop app automatically times out due to inactivity (no keyboard or mouse activity), users won’t be able to add manual time using the Were you working? pop-up. We’ll explain this more in-depth below.
Note: managers and admins can review manual time entries in the Activity Summary report.
The "Were you working?" pop-up
The Were you working? pop-up will appear on users’ screens after the desktop app times out due to inactivity. Before that happens, a 60-seconds warning countdown will appear. The period of inactivity that triggers the popup is controlled by the Time out after setting.
For example, if Time out after is set to 3 minutes, a user will see a 60-second countdown popup after having no keyboard and mouse activity for 2 minutes. After 60 seconds, the warning pop-up will be replaced by one of two possible pop-ups, depending on whether a user is allowed to edit time. 
If editing time is allowed (Can edit time is set to ON or Approval needed):
The popup shown below will replace the countdown popup. If a user was working, they will be able to click on YES, I WAS WORKING and the time between timing out and clicking on that button will be added as manual time (will appear as yellow in reports).
Users will also see this popup if they lock the computer screen or put it into sleep mode.
If editing time is not allowed (Can edit time is set to OFF):
The popup shown below will replace the countdown popup. A user will not have the option to add manual time; the time between the app timing out and a user clicking any of the buttons in the popup will not be included as work time in reports.
Users will only be able to indicate that they’re now ready to start working again.
The "Time out after" setting
To modify the Time out after time setting for your users, go to Settings > Users and find the Time out after column. This is where you can set time-out thresholds for all users or individual users.