All of this happens in the Bullets & Numbering dialog box, shown below. You will definitely want to use paragraph styles for this. My first one is called Chapter title. You will need to begin by changing the List Type to Numbers for all of the levels, and you must both name the List and use the same named list for all Levels. You do this by selecting the List > New List.

Since Word 2000 applies outline numbering by default, as you press TAB or SHIFT+TAB in a numbered list, you are moved to the next or previous outline level. If you are in a numbered list that has outline numbering generated by the method described in the previous exercise, when you choose Bullets and Numbering from the Format menu (or alternate-click a portion of the numbered list), the Numbered tab appears on the Bullets and Numbering dialog box. However, if you first select the entire list and choose Bullets and Numbering from the Format menu, the Outline Numbered tab from the Bullets and Numbering dialog box is selected.
InDesign allows you to add a page number marker to a master page within the document. The master page functions as a template for every page it's applied to, so the consecutive page numbers appear on every page. InDesign updates the page number automatically as you insert, delete and move pages. To add a page number marker to a master page, create a text box on the master page by going to the Type menu and choosing "Insert Special Character," "Markers" and then "Current Page Number."

You can add a chapter number variable to your document. Like page numbers, chapter numbers can be updated automatically and formatted and styled as text. A chapter number variable is commonly used in documents that are part of a book. A document can have only one chapter number assigned to it; if you want to divide a single document into chapters, you can create sections instead.

Almost everything I learned about Word's numbering I learned from the Word newsgroups (especially the Microsoft Word Numbering newsgroup) and from the MS Word MVP FAQ site. The contributions of John McGhie (especially his article about Word's Numbering Explained on the MS Word MVP FAQ site) and Dave Rado are significant. The current page represents a mere summary and application of some of that work.
I have a word document with a table of 6 exact cells on a full page table. In those cell areas I have been printing tickets with a list and a mail merge and updating labels. I call to an excel list of 1-2000 and then I generate all the pages through the Finish and Merge option. This all works perfect. I get 2000 individually numbered tickets to print...however...I then have six tickets printed on a page of paper with ticket numbers 1, 2, 3, 4, 5 ,6 then the next page has 7,8,9,10,11,12. This is fine but I then have to cut and stack these tickets in groups of six and at that point none of the numbering is sequential. The tickets are basically random.
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There are lots of options. For instance, you might reduce the amount of space between the number and the text by changing the Text indent at setting. Or, you might center the heading by choosing Center from the Number alignment dropdown. For even more options, click More to expose several more settings. You could use the Apply changes to option when setting level 1 to the I, II, III numbering style instead of changing it for each level.

You can exclude the first page(s) from numbering. This may be needed if page 1 follows after pages that have no numbers, or have individual numbering as the table of contents in large books. To show number 1 on page 2, double-click on its page number field and set First page to 2. Note that to have the correct page numbers on the following pages, you need either place the page number field on a master page, or set the same First page value on all pages.

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.
Place the insertion point in the paragraph and choose Restart Numbering from the context menu or choose Type > Bulleted And Numbered Lists > Restart Numbering. In normal lists, this command assigns the number 1 (or letter A) to a paragraph and makes it the first paragraph in a list. In multi-level lists, this command assigns the first lower-level number to a nested paragraph.
Remember that you must update the values in the sheet if you want to continue the numbering series with the next batch of tickets. For instance, if you want your next batch of tickets to start with 112, you'd open the workbook and change the value 100 to 112, and update the remaining values accordingly. Don't forget to save the workbook after updating the values.