Reports using the Except Function

Summary:

I have a list of all P&L accounts. I want to allocate them into three buckets. I want to add some members manually to the first 2 buckets and then have a list of all remaining accounts not allocated to either of the first two bucket.

Content (required):

I have a list of P&L accounts. I want to allocate them into three buckets. I have created an alternate hierarchy called "included accounts", another called "excluded accounts" and placed all the members from the main hierarchy as shared members within these. Then I want to create a third dynamic bucket for all other accounts that aren't in either of the first two buckets. I tried creating the third bucket dynamically using the except function but the members are still appearing in my report. See screenshot below. Am I doing something incorrectly or is this