The values of all variables with the ORDER option in the DEFINE statement determine the order of the rows in the report. In this report, PROC REPORT arranges the rows first by the value of Manager (because it is the first variable in the COLUMN statement) and then, within each value of Manager, by the values of Department. The ORDER= option specifies the sort order for a variable. This report arranges the values of Manager by their formatted values and arranges the values of Department by their internal values (np1, np2, p1, and p2). FORMAT= specifies the formats to use in the report. 
   define manager / order
                    order=formatted
                    format=$mgrfmt.;
   define department / order
                 order=internal
                 format=$deptfmt.;
   define sales / format=dollar7.2;