Steering stem upper assembly - help please

[650gts]

OK, I've got the new tapered races and bearings installed correctly.
I need some guidance in how the upper stem is fastened down with the two spanner nuts.

From bottom up I have the upper race, bearing and dust seal.
Does the original cap with the stem hole go right on top of the dust seal?
I tried it that way and the cap rotates with the stem when turning from side to side.
I didn't think that cap was supposed to move when turning.

The cap I'm referring to is this

 

[jetmechmarty]

That cap goes on top of the bearing. Then the nut, followed by the second nut to lock it in place. Two spanners helps here. When you install the first nut, get it snug, but not too tight as this will affect your steering. The triple tree goes on after that is settled.

 

[Jim]

 

[gggGary]

Yes the cap should rotate with the stem not stay stationary with the frame.