Does Core track non-billable entries for projects?

Yes, although non-billable time entries are not charged to the client and so not included in the invoices in Core, they are still chargeable to the project. Tracking non-billable entries is essential in order to track project costs and possible revenue. So it is important to watch the Amount and Charge Amount associated with time entries. E.g., if you log 2 hours of non-billable activity with bill rate $100 on a project, Core calculates an Amount of $200 on it (Bill Rate x Hours) while the Charge Amount is $0 because it is non-billable to the client, but still chargeable to the project.

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