Entity Rules provides an alternative method of triggering Rules. Instead of adding entity related events to Reaction Rules you are able to select which special Rules components will fire when different entity events are triggered.

Setting Page

Configuration -> Workflow -> Entity Rules ->Settings

Enabled Type

This allows you to set with which entity types Entity Rules will be enabled. Only fieldable Entity Types are available.

Permission Granularity

This determines how permissions will be used with this module. These settings should probably be chosen when you first start to use this module. When these settings are changed you will have to assign the new permission on the User Permissions page.
The options are:

No defined permissions. Use bundle permissions.

This module will not define it's own permissions. Only users who have access to manage the Bundles for the Entity type will be able to manage the Entity Rule setttings

Single Permission.

This will use a single permission Administer Entity Rules to allow settings for all Entity types.

Per Entity Type. Provide one permission per entity type.

This module will create one permission per entity type such as Node Administer Entity Rules.