The Exclude Pay Codes selection criteria allows you to exclude time charged to certain pay codes.  Time will be excluded from both the Capacity values as well as the actual  time charged (e.g. Booked).  This may be useful, if you'd like to exclude Leave time, Exception time or Non-Billable time for example from your utilization/allocation calculations.  

Note that this field will exclude time from both the Numerator and Denominator of the utilization calculations.

Note that when using this option, you will not be able to report on assignments or plans (actuals only).

By default (if no Pay Codes are selected), no filtering by Pay Code occurs.