For the TOC you can use the basic Heading levels (or you can right-click and alter)

Heading 1----------1
---Heading2----------1.1
------Heading 3----------1.1.1
---------Heading 4-----------1.1.1.1

BUT Sometimes, because there is so much text in between your original numbering, it gets forgotten, or muddled. I would suggest that you type the numbers manually rather than using the Bullets and Numbering lists.

When making a normal list, to go to the next level you use the Tab key to go to the next level. e.g. 1 ---> 1.1
And Shift+Tab to go back one level. e.g. 1.1 ---> 1

Hope that helps!