You defnie time types if you need to keep track of time balances or generate quotas in time evaluations. You can use PCRs in the time schema to calculate/setup time types as required.
The main link for payroll is the time wage type table V_T510S...this table has a processing type...and a corresponding wage type...and lots of other conditions...(please read help for this).
so the idead is from time evaluation...you can evaluate time in pairs (TIP table) and then associate them with required processing types as per your requirements...once a processing type is assigned to a time pair...GWT function within time schema can select the time wage type...based on time WT grouping, processing type and other parameters...this time wage type is then passed to payroll...its also possible to setup extra/premium payments for these wage types on V_T510J...