An InDesign document can only have one chapter, and these chapters are typically combined in an InDesign book. To insert a chapter number, create a text frame where you want the chapter number to appear on either a document or master page. Click on the "Type" menu, then "Text Variables," "Insert Text Variable" and then "Chapter Number." Update the chapter number if necessary to keep your chapter numbers consecutive by clicking on "Numbering & Section Options" in the Layout menu.
Whenever you begin a new project, clear the settings out. There's a couple ways to do this. You can choose Tools Customize, and hit Reset Usage Data. But more than likely, you've forgotten to do that like I do. So, instead, when you go to use a bulleted or numbered list, go ahead and reset them all. I did not do anything special to show you the screenshot below. I just opened Word 2003, and hit Format Bullets and Numbering, and there it was, already like it is in the picture. Doesn't look like the default, does it? Nope!
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.
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To modify the layout of the list, use the Options tab. Notice that the preview on the right shows the outline selected. In the Level box on the left, select 1, then 2, 3, and 4 and see how the information in the Numbering and After boxes changes. Use the Options page to set different punctuation; for example, a period (full stop) after “a" on level 4 instead of a parenthesis.
There are three settings we need to embed in this field. The first is to tell it what kind of numbering we want to do (in this case, “First, Second, Third”), what case we want to use (upper case, title case, etc.), and a switch to tell Microsoft Word to increment the numbers. Click each of these settings as shown below, being sure to click Add to Field after each one:

Formatted number used for sound recordings, printed music, other music-related materials, and video recordings. Publisher's and distributor's numbers that are given in an unformatted form are recorded in field 500. A print constant identifying the kind of publisher or distributor number may be generated based on the value in the first indicator position. Repeatable for multiple numbers associated with an item. numbering using word
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