To enable the Time In/Time Out feature, you would first need to enable it in your database.
To enable this feature in your database, you must go to Admin-->Payroll Setup. From there you would need to click on 'Time In & Time Out' in the 'Timesheet Layout Preference'.
On the create time sheet screen you would click the drop-down icon next to 'New Timesheet' and select 'Time In & Time Out':
From there you can go ahead and enter the time in/out and based on your payroll setup it will auto-calculate regular hours, overtime hours, and double time hours: