If you’re not using the Punch Clock method or the Contracted hours method, then you can use the Shift types to manage Time off in lieu manually.
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This scenario can be mostly used by companies who don’t have to manage too many overtime hours.

Create two Shift types by going to Settings > Schedule > Shift types

You need to map the Shift types Flex + for overtime and Flex - for undertime to the TOIL accounts under Settings > Leave & Overtime (or Absence, Overtime, Vacation) > General > Shift types for time off in lieu accounts.
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Next, you can assign this shift type to an employee on the schedule by changing the Shift type from Normal to Overtime or Time Off (TOIL).

When a Schedule manager or Admin approves the hours with these Shift types on the schedule, they will be transferred as overtime or undertime into the employees’ overtime accounts.

As an example, let's assume an employee works a normal shift but stays one hour extra. That extra hour could count towards their flex account. You as an admin could create a new shift for one hour after their scheduled shift, and change its Shift type to a Flex+ so that the employee would gain one hour to use in their Flex account.