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Understanding outline numbering and how outline numbering interacts with styles is crucial to your success in using Word with legal documents. Basic outline numbering can be handled much the same way as bullets and numbering. Seven default outline numbered lists come with Word. Three of the lists format the paragraphs with outline numbers. These lists are in the top row of the dialog box. The remaining four format the paragraphs with outline numbers and apply heading styles to the paragraphs and can be found in the bottom row.

Do not let me lead you into a headache under false pretences: this FAQ is not going to tell you how to fix a document that contains broken numbering. It simply explains how the numbering works: this is valuable information if you work with Word a lot, and by understanding it, you can often work out how to fix a document. However, this FAQ is not going to tell you how.  (For a discussion of methods, see: List Restart Methods).
The easiest way to implement a numbering scheme for headings is to add one to a heading style. To illustrate, we'll modify Heading 1 by adding a numbering scheme. First, right-click Heading 1 in the Styles gallery (in the Styles group on the Home tab). Then, choose Modify as shown in Figure A to launch the Modify Style dialog. If you thumb through the default properties, you'll not find a numbering scheme (Figure B). Click the Format button and choose Numbering as shown in Figure B. If necessary, click the Numbering tab. Choose the predefined scheme that's the best match for what you want (Figure C).
Select the text frame with the Selection Tool (V, Escape) and go to Edit > Copy and Edit > Paste. Manoeuvre this second text frame onto the left-hand page in a mirrored position. InDesign will provide pop-up guidelines once the text frame lines up exactly with the frame on the right-hand page. Once your happy with the positioning, select the Type Tool (T) and adjust the orientation of the text to Align Left from the Character Formatting Controls panel, as before.
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Click the plus sign at the bottom of the panel to open the Add Documents dialog box. Navigate to your chapter documents and select them all at once (select the first one, press Shift, then select the last one), then click Open. Now the documents will all be shown in your Book file. Save the Book file by clicking the Save the Book icon at the bottom of the panel (second from the left). Here is what our Book Design Made Simple panel looks like:
Gus: I think chapter numbers only work when you have multiple documents in a book panel. You need to use File > New > Book to create a book panel. I strongly urge you to read up about how books and long documents work before you go any farther. I have a number of movies at lynda.com on this subject. If you don’t have a subscription, you can watch 7 days for free with this link: http://www.lynda.com/trial/indesignsecrets
There are two ways to number the pages using the Book feature: manually or automatically. If you’ve set the starting page number in each document manually, those page numbers will appear in your Book file. There are, however, advantages to numbering your pages automatically. For example, say you decide to add a few pages to a chapter, or change your mind about the order of the chapters. With automatic page numbering, your Book file will adjust the page numbers accordingly whenever you make changes that affect the page numbering.
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Determine what kind of numbering you want to use for your document or book. For long documents, you can assign chapter numbers. Each document can be assigned only one chapter number. If you want to use different numbering within a document, you can define ranges of pages as sections; these sections can be numbered differently. For example, the first ten pages of a document (the front matter) might use Roman numerals, and the rest of the document might use Arabic numerals.
A multi-level list is a list that describes hierarchical relationships between the list paragraphs. These lists are also called outline lists because they resemble outlines. The list’s numbering scheme (as well as indentations) show rank as well as how items are subordinate to one another. You can tell where each paragraph fits in the list with respect to the paragraphs before and after it. You can include up to nine levels in a multi-level list.
You have two choices when faced with the task of numbering headings in a Word document. You can enter the numbers manually and hope nothing changes — lots of luck with that one. Or you can opt for the more efficient solution and create and apply a numbered style. Unfortunately, that can get you into even more trouble, if you don't know what you're doing. To avoid surprises, follow these 10 steps to add a numbering scheme to a style.
Starting an auto-numbered paragraph is deceptively simple. See those buttons on the top row of the Paragraph section of the Home tab? The left-most one is for bullets; the next two to its right are for numbering and multi-level numbering, respectively. Simply click the button to toggle the feature on, or click on the drop-down arrow on each button to select a specific style. If you don’t like any of the delivered choices, you can click Define New to set your own.

You can also insert a page number inside existing artistic or paragraph text. If the text is located on a local layer, the page number is inserted on the current page only. If the text is located on a master layer, the page number becomes part of the master layer and appears on all pages where the master layer is visible. For more information about artistic and paragraph text, see Adding and manipulating text.
Determine what kind of numbering you want to use for your document or book. For long documents, you can assign chapter numbers. Each document can be assigned only one chapter number. If you want to use different numbering within a document, you can define ranges of pages as sections; these sections can be numbered differently. For example, the first ten pages of a document (the front matter) might use Roman numerals, and the rest of the document might use Arabic numerals.
If you know in advance that you need outline numbering for your paragraphs, you will want to choose the correct format from the Bullets and Numbering dialog box. Applying one of the preset formats to a paragraph or paragraphs that are already bulleted or numbered applies it to the entire list. There is a specific tab for outline numbers — the Outlined Numbered tab.
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