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There is a Moodle attendance plug-in that can be used to keep track of class attendance.  To add the attendance module, go to your course in Moodle and turn editing mode on.  

Set up

Add an activity and select "Attendance."  If desired, you can change the name and grade total.  Click on "Save and return to course".  You should see a new attendance item in your course.  Click on the attendance item to set up your preferences.

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Info

You only need one attendance activity per course. You can set up as many sessions as you want within the one activity.

Taking Attendance

Click on the attendance activity from the main page and click on the "Sessions" tab.  Click on the green circle to take attendance for the corresponding session.  There are options to view a listing or a grid of students.

Other Notes

A gradebook entry is automatically created for attendance.  If you use the gradebook, but don't want to count attendance as a grade it is possible to assign a zero weight to attendance. 

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It is possible to use the attendance block to keep track of class participation for a class meeting by replacing attendance codes with participation levels.

Troubleshooting

If the number of points that attendance is worth is changed, sometimes the gradebook does not recalculate.  To force an update, change a point value in the attendance settings area (e.g. change present from 2 to 3 points) and then set the point value back to the desired value.  This forces a recalculation of the grades.