Day Processing of Time Data in Payroll 
Use
Employee time data recorded in R/3 Time Management contains information about any relevant time-based location, duration, and quality of work completed. This information allows you to determine bonuses.
Day processing for time data forms time wage types from the information recorded in R/3 Time Management during the payroll run.
Prerequisites
The calculation basis is formed from the time data recorded in R/3 Time Management and scheduled employee working times. The following must first be set up in Customizing or in HR Master Data maintenance:
For more information, see the Implementation Guide (IMG) for Personnel Time Management.
Features
In the standard R/3 System, the time data is processed using the schema TC00 (Wage Type Generation International) or TC04 (International Wage Type Generation for Time Evaluation without Clock Times) Both schemas record only the exceptions to the daily work schedule. Schema TC00 processes time data recorded in clock time format and are full-day records. Schema TC04 only records time data in hourly format.
See also:
Time Wage Type Selection