Heater hoses routing on s14 pics inside

[silviaNC]

so I just dropped my first sr swap and I,m kinda confused about the heater hoses.
with hose goes were? does it matter? also see a valve with a cable. do i need it?
so far i connected the hose coming from the bottom(thermostat line) to the bottom on on the firewall. now the issue is the top one coming from the firewall has a valve on it and not sure if it is correct. does the top one goes to the water return line ( line behind the head, where the turbo return line come from)??