'Person Types' is a way to separate your list of 'People', so that when you log an Incident for example you only see the relevant names. Commonly used 'Person Types' are:
Children;
Staff;
Logins;
If you have separate Child and Staff Incident Types, you can configure which Person Types can be used for each Incident Type. This means that when you log a Staff Incident, you won't see a list of Child names when you start typing.
'Logins' is often used since you will have quite a few 'dummy logins' (EG Room logins) that aren't real human beings. It's best to separate these from the rest.
To create 'Person Types' you go to 'Settings > People > Person Types'. Then click the green '+ Add Person Type' button.
