This template is meant to be used if you have a small project with only a few project members.
Only the minimum of WI types are defined in this template. Tasks, Change Requests and Test Runs aren´t used.
All reports are specially designed for this template so if you start working with this template you will quickly know the status of your project and what is need to be done next.
You don´t need to worry where you have to store your requirements and test cases. Nearly everything is working automaticaly.
Typical steps are you import requirements you get of a customer into your project, specify requirements to these customer requirements and test your requirements to verify that all requirements are covered and tested successful. If some of these tests fail you can also do the defect tracking in this project.
You should plan requirements, test cases and defects directly so all of these WI types are visible in the live plan and your work records are also tracked directly to these items without creating a task for each requirement or test case.