Locate the desired destination for the activity and click "Add an activity or resource".

Select "Attendance" from the activity picker.

Provide a new name for the Attendance activity.

Optionally, provide a description for the activity to ensure students know what the attendance is being tracked for.

Select if the activity will be graded or not via the "Grade" tab.

The "Activity completion" tab can be enabled to allow students to track upcoming Attendance sessions. 

Do not indicate activity completion
Students can manually mark the activity as completed
Show activity as complete when conditions are met

Click "Save and return to course" to confirm changes.

Ensure the new Attendance activity has successfully been added to the desired location.

How to Create an Attendance Activity in Moodle