The time exceeding regular work time can be allocated in different ways. Targets can be, for example, compensation hour to hour, overtime to salary or an accrual.
The targets to which the work time will be allocated need to be set visible. This is done either in the worktime setting group settings or working community settings: Work hours - Accruals and overtime hours - Calculation settings - Overtime - Visible overtime options on event creation
For example, if you want to target the basic part of overtime hours to Overtime balance and the increment part of overtime hours to Salary, then you need to set the following option visible by selecting Yes to the setting:
When your desired option has been set visible, it will appear in the list of overtime targets in event creation.
More information about targeting overtime hours can be found here.