If I select the billing method “Based on staff hours” and specify the Cost per Hour for each user, how will expenses be generated automatically from the time entries logged?

The Cost Per Hour associated with the user will not be recorded as an expense. The Profit and Loss report will only show income and expense transactions recorded in your Zoho Books organization. Thus, the salary paid to your employees have to be recorded as an expense.

Learn more to know about recording expenses associated with a project.