i)  Login as the Administrator. 
ii) Click on Time Off Setup.
iii) Then click on Time Off Types.
iv) Click on ADD.
v) Enter a name in the Name field.
vi) In the drop down next to Track Time As select Track As Time Taken.
vii) In the Default policies for New Users section select No policies in the drop down next to Policy Type
viii) Click on Users in the Users/Departments section.
ix) Click on the name of the user and click on Edit.
x) In the Edit User user page click on the Time Off tab.
xi) Put a check mark next to the new Time Off type created.
xii) Then click on the timesheet icon and after the Timesheet generates click on the Add Time Off button.
xii) In the Time Off column drop down select the Time Off Type and enter time against it on the weekly day off.
 
Note:- If the Add Time Off button is not visible in the timesheet. It's recommended to log out and login in. This should resolve the issue.