Manager is a group variable. Each detail row of the report consolidates the information for all observations with the same value of Manager. Department is an across variable. PROC REPORT creates a column and a column header for each formatted value of Department. ORDER=FORMATTED arranges the values of Manager and Department alphabetically according to their formatted values. FORMAT= specifies the formats to use. The empty quotation marks in the definition of Department specify a blank column header, so no header spans all the departments. However, PROC REPORT uses the formatted values of Department to create a column header for each individual department.
   define manager / group order=formatted
   define department / across order=formatted
                 format=$perish. '';