How do pay defaults work in the Processes > Default Earning Rates Time Sheets entry process?

When creating time sheets from the entries made in Process > Default Earning Rates Time Sheets, the following rules apply:

• Default values are supplied at the highest level by the entries found in File > Preferences > Payroll > Advanced Earnings Matrix.
• The pay rate is always supplied at the Default Earning Rates level.
• If the pay default is part of the Default Earning Rates level, then default values specified at the pay default level are applied for all fields that have NOT been supplied a default value at the Default Earning Rates level.
• The final level for applying default values is at the Setup > Employee > Earning tab level. Only fields that did NOT get a default value from the Default Earning Rates or Pay Default level, get a default value from the Employee Earnings level.