You’ll see in the Book file shown below that the left column contains a symbol in one of the rows called Indicates the Style Source. It means that the document in that row contains the styles that govern all the documents in the Book file if you choose to synchronize the styles. Synchronizing styles using the Book feature will synchronize your paragraph styles, character styles, object styles, and color swatches.
In summary, paragraph numbering is really just an exercise in logic, and this blog post is showing the numbering styles for a very specific project. Your project may be similar, but not exactly the same. You just need to think though the levels and how you want to restart the numbers. I do my best to think it through correctly the first time, set it up, and then try as hard as I can to break it, so that I can find my errors. The good news is that once you get your numbers working, you shouldn’t ever have to think about it again.
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.
You can't use Word's Numbering feature to generate a multilevel numbering system, even if you use built-in heading styles. Figure A shows a document with two styled heading levels: Heading 1 and Heading 2. You can apply the Numbering option (in the Paragraph group) and Word will number the headings consequently, but the feature ignores different levels; if you expected 1, 1.1, 2, 2.1, and 2.2, you might be surprised. If you select the entire document first, Numbering not only ignores the different levels, but it also numbers the paragraphs!
To modify the options, click the Multilevel List option (in the Paragraph Group). Word selects all lists currently in use in the List Library. You'll see two options below the gallery: Define New Multilevel List and Define New List Style. Use the first to create and save a stable custom list style. You'll use the second to change list styles. You can also use the latter to create a new style. So, what's the difference? The Define New List Style option lets you name a style, so you can share, modify, and delete it later. Most users will never need this option. Now, let's move on: choose Define New Multilevel List. Figure D shows the resulting dialog.
CK Note: Word 2007 - 2013 interface has an different automatic numbering scheme which I have been told is much less subject to corruption. Microsoft Word 2010 Bible by Herb Tyson, MVP. However numbering is still very imperfect in these later versions. I still recommend following Shauna Kelly's step-by-step instructions (see above) if setting up numbering in a template or in a document likely to be heavily edited. If you start without doing this and end up with "spaghetti numbering," fixing it will be a very large chore!