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This really sounds like Approval FrameWork (AWE)
Approval FrameWork does all that you explain, not sure if TimeSheet has this delivered vanilla (I think it does, see PDF link below), but this is highly configurable.
Basic flow for using this framework for custom transactions:
Need to create a transaction record that stores the current transaction, instead of the current records.
On the SavePostChange you need to initiate AWE.
On the AWE configuration you configure workflow steps who needs to approve and does this person need to receive an worklisitem or email.
The approver receive an worklisitem or email and is redirected to an Approval Component (need to create one).
When approver approves or denies the transaction needs to write the timesheet records.
This is the way all MSS components work with approval now a days.
For more information on AWE see these great Advisor Webcasts.
E-AWE: Approval Framework (AWE) 2011 Advisor Session Series PDF Files [ID 1373026.1]
And this red paper
PeopleSoft HCM 9.1 Time and Labor AWE and Delegation Red Paper [ID 1299685.1]
I'm afraid this has been introduced in HCM 9.1.
Looking at PeopleBooks HCM9.1, this has a new section describing AWE, which is not in HCM9.0
PeopleBooks > PeopleSoft Time and Labor 9.1 PeopleBook > Using Approvals and Delegations with Time and Labor
You can also see the following Advisor Webcast that describes AWE for HCM9.1 and at one slide the difference between HCM9.1 and HCM8.9/9.0 is discussed and it make clear that AWE was not incorporated in HCM9.0 for T&L
See this link for the Advisor Webcasts
and look for webcast:
Time & Labor AWE - Designing Your Approval Workflow
If you really want to setup what you described you are bound to customization ...
In fact you can still use AWE, this was introduced overall in PeopleTools 8.49, in later versions it became part of Enterprise Components.
I use AWE all the time for creating newly ESS/MSS functionality.
Basically the steps you have to follow, are the ones I mentioned in previous post.
Look at this doc for the steps to implement AWE
E-AWE: Where to Start with Creating a New Custom Approval Framework (AWE) Process? [ID 1394046.1]
This doc also contains a great explanatory chapter from Jim Marion's Book: PeopleSoft PeopleTools Tips & Techniques, dedicated to AWE
There is a red paper explaining how to incorporate custom AWE.
Approval Workflow Engine (AWE) for HCM 9.0 and Later [ID 747740.1]
Or you can just use plain old WorkFlow (more static, not so appealing)
Hope this helps ...