One of the easiest ways to begin applying numbers is by starting to type a numbered list. Word recognizes that you are creating a list and responds accordingly by converting text that you type into numbered items. The number scheme, delimiter characters that mark the beginning or end of a unit of data and formatting are all based on what you have typed.
This chapter (web page) takes you through how numbering is supposed to work in Word and the various controls. It is useful, but primarily on SEQ fields and simple numbered lists and also as reference showing the menus, dialogs and controls and going through the concepts for outline numbering. To actually set up outline numbering that works, refer to the Kelly and McGhie articles.
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.
Thanks David for posting this for me. And thanks for sending me the .inx fie. I had a complete memory lapse on how to make a number list like that and was uber-cofused. If it was written about before I couldn’t find it on the search function for the site. And even if it is over a year old it’s still good info. It is in the Mailbag section so it really was just an answer to an email and generoulsy posted.
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See Word's Numbering Explained by John McGhie, MVP - comprehensive and not pretty (Downloadable pdf file in letter size) - Reading this is vital to anyone attempting to use automatic numbering or bullets in a law office setting or other places where the documents are likely to be reused or heavily edited. See also How to Create a Template with a downloadable template with style-based numbering.

 Does anybody have an easy way to set up sequential numbering in Coreldraw? Our shop has to lay out unit number plaques for vinyl cutting and sometimes my employee has to manually type in hundreds of numbers. I've read all the print merge suggestions for raffle tickets and such but I need the numbers entered into an object and not during the print process. 
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I want to point out that if this document is a fixed set of standards but will be amended in later editions, then autonumbers will increment, which is a bad idea. In legal documents, numbers are usually static, and deletions are struck-through, not deleted, to preserve the original numbering, so that older and newer editions can be compared number-by-number. Inserted and appended content would need to be manually numbered. You may want to create the first edition with autonumbering, then convert the numbered list numbers to text, to avoid unwanted renumbering in future editions.
It's also possible to consecutively number list items in InDesign. Create a text frame for your list and click the numbered list button to insert a list. Type your list items, pressing your "Enter" key between items. InDesign consecutively numbers the list automatically; you can change the number it begins with and the style of the numerals. Press your "Alt" key (Windows) or "Option" key (Mac OS) while clicking on the numbered list button to open a dialog where you can modify those options.
You can add many of these items by using text variables. InDesign includes several preset variables, such as Creation Date and File Name. You can modify these variables, and you can create your own. For example, you can create a variable that displays the first use of a Heading paragraph style in the header or footer. Once you create or edit the variables you need, you assemble them on the master page to create your header and footer, and then you apply the master page to the appropriate document pages.
Whats happening is that the first set of NUMBERING (including sub numbering) i.e for 1.0 HEADING 1 is coming PERFECTLY as numbered. I hit "enter" at any level of numbering, word automatically puts the next number below that number. However for the rest of the headings such as 2.0 and 3.0, where there should be 2.1 there is 1.1, where there should be 2.2, its 1.2 and so on and so forth. Same for 3.0 and its numbering subsets.
Thank you for your reply.  It reassured me that I was on the right path. From having read other Help texts, I guessed that I would have to use good ole mail-merge and set up a numbers list in Excel. Luckily my knowledge of Excel was good enough to know about the drag&drop for sequential immediate numbering. When it came to the crunch, it was this particular type of mail merge which gave me a bit of initial difficulty. Despite my having used it happily and often in Word, for labels in Publisher, it was - not surprisingly - different in certain respects; principally the crucial point of the Print stage, which necessitated finding the option Publications & Paper Settings, and selecting 2 specific parameters, namely (1) Multiple pages per sheet,  (2) Single-sided printing (my default double printing had appeared). Once I'd sussed this, it was plain sailing.  Thanks again.

It's also possible to consecutively number list items in InDesign. Create a text frame for your list and click the numbered list button to insert a list. Type your list items, pressing your "Enter" key between items. InDesign consecutively numbers the list automatically; you can change the number it begins with and the style of the numerals. Press your "Alt" key (Windows) or "Option" key (Mac OS) while clicking on the numbered list button to open a dialog where you can modify those options.
Changing the numbering display affects how pages are indicated in the InDesign document, as in the Pages panel and in the page box at the bottom of a document window. The numbering display also affects how you specify page ranges when printing and exporting the document. However, the numbering display does not change the appearance of page numbers on document pages. numbering in indesign
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