Hi Karen,
Thank you for the description of what is happening and the actual sorting results. Indeed I am now able to replicate this, where the report appears to be sort primarily by the Department code rather than the Account code. Sample data is set up with the non-departmentalized accounts (balance sheet) with lower account codes, so it wouldn't have displayed this issue.
I can write this up for development to be fixed for a future service pack. Thank you for bringing it to our attention.
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Regards,
Softrak Tech Support