When configuring the time setup, you can choose whether to enter the start/end time for the daily hours worked on a project. It's also possible to enter the hourly deduction for a lunch break and indicate the duration of the lunch break in minutes, or enter directly when recording the report the hours worked.
This setup is not mandatory and only an option, if you decide not to set this up when you enter the hours worked against a project you would only enter the total number of hours worked.
This is located within Project > Employees . Other options > Time setup.