Form Default - Automatic number snag - broken sequence

With a set of accounts in manager,
uploaded from a template created before form default update
Automatic referencing is still ticked to enable
and sequence in place,
but when i try to add a new item eg receipt to is reverting number to start from 1
i know how to action form defaults from within form bottom right
but how can i resolve this mid year number sequence error
thank you

Can you please illustrate this with screen shots? It is not clear exactly what you are referring to.

when creating the receipt
the automatic sequence is apparent
but not used
Screenshot 2022-08-24 at 08.47.03

Are you using a custom theme?