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\documentclass{article}
\usepackage{graphicx}
\begin{document}
\section{Introduction}
\section{Figures}
\begin{figure}[hb]
\centering
\includegraphics[height=2cm,width=3cm]{example-image}
\label{fig:example}% before \caption, which is wrong
\caption{An example figure}
\end{figure}
\section{Appendix}
\begin{figure}[hb]
\centering
\includegraphics[height=2cm,width=3cm]{example-image}
\label{fig:other}% before \caption, which is wrong
\caption{Another example figure}
\end{figure}
% Now we get wrong reference numbers:
See example figure \ref{fig:example} and another figure \ref{fig:other}.
\end{document}

[latex]\caption[/latex] takes care of the figure counter that [latex]\label[/latex] should ise. If [latex]\label[/latex] comes before [latex]\caption[/latex], it takes some previous counter, which is wrong.

Let's look at this in this example:

[code]\documentclass{article}
\usepackage{graphicx}
\begin{document}
\section{Introduction}
\section{Figures}
\begin{figure}[hb]
\centering
\includegraphics[height=2cm,width=3cm]{example-image}
\label{fig:example}% before \caption, which is wrong
\caption{An example figure}
\end{figure}
\section{Appendix}
\begin{figure}[hb]
\centering
\includegraphics[height=2cm,width=3cm]{example-image}
\label{fig:other}% before \caption, which is wrong
\caption{Another example figure}
\end{figure}
% Now we get wrong reference numbers:
See example figure \ref{fig:example} and another figure \ref{fig:other}.
\end{document}[/code]

When we compile it, we get:

[attachment=0]figures-labels.png[/attachment]

We can see that the references at the end are clearly wrong. If we take a closer look, we see that they refere to the section number, where they are in. Move [latex]\label[/latex] after [latex]\caption[/latex], and the issue is fixed.

Stefan

In [i]Chapter 7[/i], [i]Cross-Referencing[/i], I read that the [latex]\label[/latex] command has to be placed after the [latex]\caption[/latex] command, not before.

What happens if I put [latex]\label[/latex] before [latex]\caption[/latex]?