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I was told that version 6 can do this, how do you do it in version 7.0?

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Hi, instead of making your timesheet from the hours computed in your payslip, why don't you do the opposite?

We have built a module to import worked days from the timesheet : https://github.com/OCA/hr/tree/7.0/hr_worked_days_from_timesheet

This way you can make your timesheet and then create the payslip.

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David,

Am I correct to say that since I have the timesheet I can bill as well?

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Sure, timesheets are meant for this. The base module hr_timesheet_invoice does that.