You manage loss provisions from SETTINGS (Admin).
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Select Provision Percentages. This will allow you to define the percentage of your Portfolio you wish to "reserve" or virtually set aside for "losses" in that arrears aging band. 

Select ADD PERCENTAGES
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You will now be able to add the percentages for each arrears age category.  Save it when complete. 

Then you will be able to see the provision amounts when you view a loan account from the Collections section. 

LoanCirrus will show you the amount of potential at risk loss for a specific arrears age and also show the amount of the provision amount that is being utilized relative to what was provisioned.