In order to charge Late Cancel or No Show fees in the system, you will first need to set your Booking window.
To set your booking window head to Settings > Member Area > Restrict members booking within X (time) of the class start time. You can set this for Classes and Appointments. After you've set the window, save.
To set the Late Cancel and No Show Penalty fees, head to Services > Classes. Either create a new Class Type or edit an existing, scroll down to Late Cancel Penalty and No Show Penalty to toggle them on. You can choose which you are using or both.
If you toggle Late Cancel Penalty on it will use the default Late Cancel Window for any classes/appointments of that type that are scheduled on the calendar. If you change the settings here for the Late Cancel Window, it will override the global setting but NOT change anything currently on the schedule. It will only change new classes/appointments with that type moving forward.
You will be able to choose which penalties they will incur when they either late cancel or no show. You can have the customer lose their credit they booked with, if applicable or they can be charged a fee. If you choose to charge a fee, a box will appear where you can put in the fee you would like for them to be automatically charged.
Now when you create a new class on the schedule using the service you set the Penalty Fees for, you will see the defaults you set. You will have the option to change it on a one-off basis in each class under Advanced Settings.