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Default auto renumbering rows with blank spaces

I am so stumped on this one simple function! I am compiling an inventory list
of key rings we loaned to employees. Since there are different departments
with a varying amount of employees each, I skip a line between departments .

The problem: there are 700+ employees so far and since I skip a line,
renumbering if off, so I have to highlight each department and use the ROW()
function to maintain the proper numbering sequence. I am sure that there is a
function that allows for automatic renumbering, or automatic updating for the
column whenever a row is deleted, added, etc. I just don't remember where to
go to turn that on. Help!
 
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