Semantics. I didn't say anything about total time, but even if I did, would it matter? When applying for the ATP, you can say that it reduces the amount of total time required, or that it is included in your total time for the purposes of this certificate. Regardless, the outcome is the same.

"Total Time" is a misnomer anyway...the FAA uses the term "Total Flight Time" for what you seem to be referring to. They seem to use "Total Time" only when referencing total aeronautical experience, which tends to include approved simulator time. I don't know the regs by heart, so there very well may be examples contrary to what I said, but that's from what I've seen recently.

"(a) Except as provided in paragraphs (b), (c), and (d) of this section, a person who is applying for an airline transport pilot certificate with an airplane category and class rating must have at least 1,500 hours of total time as a pilot that includes at least: "

"(6) Not more than 100 hours of the total aeronautical experience requirements of paragraph (a) of this section or § 61.160 may be obtained in a full flight simulator or flight training device provided the device..."

So from that small snippet, it would seem that total time INCLUDES applicable sim time in regards to a certificate. What people generally log as "Total Time" would more appropriately be called "Total Flight Time."

But again...semantics.

Edit: bolded "obtained" for emphasis.