The Sort Alphabetically button is only available on the collection toolbar when an AceText Collection tab is active.
Click the Sort Alphabetically button on the collection toolbar to sort all clips and folders in the active collection by ascending alphabetic order. Doing so will permanently keep the collection ordered alphabetically. When you add and edit clips, they are automatically moved into the correct position, until you click the Sort Alphabetically button again to turn it off. Turning the option off will not revert the collection to its unordered state. The clips and folders remain ordered, but adding and editing clips will no longer cause them to be moved to maintain alphabetic order.
The clips and folders on the All Collections and Recycle Bin tabs are always sorted alphabetically. The ClipHistory is never sorted alphabetically.
See Manage and Arrange Text to learn how to use AceText.