Go into your customizing and press F1 for the residence time fields, it is well explained.
Residence 1 is the time between setting of the deletion flag and the deletion indicator
Residence 2 is the time between setting of deletion indicator and archiving.
If you have set the deletion flag just this week, then you have to wait 40 months until you can set the deletion indicator. And then you can directly continue with archiving as residence time 2 is set to zero