When you mean inactive, do you mean having a zero balance or specifically having the status of an account marked as Inactive? I suspect the latter.

What version of Adagio Ledger are you using?

If you want to hide all zero amounts (for active or inactive accounts), you can use the toolbar button called 'Zero suppress' that looks like a red circle and a slash through a zero. This hides all rows are all numeric cells on the row are zero. This might accomplish what you want to do, as inactive accounts won't have a balance or other amounts.

If you want to hide all inactive accounts, regardless of the balance, then the button 'Inactive accounts' you indicated is the one. Using RANGEDEPT, this shows all accounts in a range and there is no guarantee than all accounts and/or the department are marked inactive, so the Inactive Accounts function won't suppress rows. Similarly, it won't suppress expanded rows from RANGE because a single account could represent multiple departments.

Suppress inactive accounts on a financial statement works only when a single specific acct-dept is on the row. If you want groups of accounts on a single row (as RANGEDEPT does) then you can't use the Inactive Accounts button to do what you want.

You can use the Inactive Accounts button if .RANGE is used, and the account range in column B has something like 4000:4999-* (for all departments) or ="4000:4999-" & TRIM(DEPARTMENT(0)) -which reads the department from the toolbar drop-down.