Group on the unique feature that distinguishes detail 1 from detail 2 to create Group 3. Then the subtotal goes in the Group 3 footer, and the grand total for details 1 and 2, etc., in the Group 2 footer.
I think this means the problem is what field you are using to distinguish your "detail" groups (Group 3). You wouldn't get two instances of Detail 2 if you grouped on a unique field. Also, where are you placing your subtotals? Your last description is confusing, since if you did add a Group 3, it would look something like this:
Group Header 1
Group Header 2
Group Header 3 - Instance 1
Detail 1a
Group Footer 3 - Instance 1 subtotal
Group Header 3 - Instance 2
Detail 2b
Detail 2c
Group Footer 3 - Instance 2 subtotal//etc.
It almost looks like the field you grouped on for Group 3 might be one that can represent a parent or child relationship--and that's why 2 is getting nested within 3. Or are you using only part of a field to group on, e.g., "starts with 'C'"? It would help if you provided more descriptive information about the fields you are grouping on.
Thanks again. I think I've found the trouble. It's not the Crystal structure but the way the data is being shaped in the SQL Stored Procedure. I appreciate your help. You've jump started my brain. After looking at this for so long it's hard to see the forest for the trees! Again, thank you.
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