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A zero grade can be automatically entered in the gradebook for students who fail to submit an assignment or quiz by its due date. This feature requires a future due date. It is not retroactive. At the time of the due date, any missing submissions will receive a grade of zero. You still have the ability to manually override the zero should the work be submitted later.
Best practice is to turn the setting on at the start of the semester. Doing so will prevent students with missing work having