This feature is available in all editions.
Defects are generally entered and planned in the Product Planning area. Here, they can be parsed out to specific projects in the hierarchy, and then reviewed by the team and scheduled into a sprint/iteration.
Option 1. Inline in Any Grid
Choose this option to quickly add empty rows to any grid.
Click Add Defect Inline to the right of the grid.
When the new row displays, type the details in the available fields, and then click Save.
Option 2. Using the Defect Details Page
The defect details page provides additional fields and allows you to enter more detailed information about the story.
In any grid, click Add Defect to the right of the grid.
When the Defect Details window opens, type in the appropriate fields, and then click Save.
Option 3. In the Asset Tray
To view recent changes in the Asset Tray, click on the tab on the left side of the window.
If you can’t seem find an item you just added, just open the Asset Tray to see the list of your most recent changes.
Open the Asset Tray, and then click Add New... > Defect.
When the Add Defect window opens, enter the details in the appropriate fields, and then click Save
Option 4. Import Defects from a Spreadsheet
If your defects are in an Excel spreadsheet, or if you have a large number of backlog items to add, you can import them into the backlog using the Import feature. For instructions on how to do this, refer to Importing Stories, Defects, and Other Data from Excel.