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When using the Simple Principal or Multiple Simple Principal source options, you enter an amount which is either

+ve (debit) or -ve (credit). You then need to enter the applicable interest rate on debit or credit balances.

 

If you select Transactions or Multiple Cases with Transactions then you can have multiple amounts, which may include a mixture of debits and credits and resulting debit and credit balances. For example a credit card statement,  trade credit account or professional fees account can have a series of purchases/invoices (debits) and a series of payments (credits).

 

Interest is always calculated on the amount of principal, whether it is +ve (debit) or -ve (credit). You have complete control over the interest rate and frequency of calculation on debit and credit balances. They can be different or the same.

 

Accordingly, you separately define the interest rate on debit and credit balances.

 

Unless you are dealing with accounts for a financial institution or lender or an investment, the usual scenario is to calculate interest on debit balances because they are debts owing, and it is less likely that you will calculate interest on credit balances.

 

Note that options to set interest rates for debits/credits may be hidden from view if in fact your calculation has no debit or credit balances of Principal.