There are a number of parameters and settings that need to be configured in order to use demerits.

Demerits active	Set this parameter to Yes to enable the use of demerits in the Circulation module.
Demerit codes	Use the Table Manager in Maintenance to add Demerit Codes to the DMC table.
Loan policies	The Demerits tab in Loan Policies allows the application of demerits for overdue items.
Demerit parameters for Borrower Categories	The Demerits section in the Details tab of Borrower Categories Maintenance contains a number of parameters regarding the application and removal of demerits.
Debarral parameters for Borrower Categories	The Debarral tab of Borrower Categories Maintenance allows the configuration of parameters that control when debarral is applied or removed based on demerit points.