Attendance/Production Type represents the basic units that is used to compute employees' pay and to track and represent data on productivity. Attendance/production types are dependent on the Pay Heads that constitute employees' pay structure, and so you may need to define multiple types.
You can also define Attendance/Production Types in hierarchical group to ensure that attendance types having a common unit are combined under logical groups. For example, The group Present Days can have Present and Leave with Pay as sub-groups.