Set the latch before it goes in: its bevel faces the stop (the way the door closes) and its backset matches the bore, 2-3/8″ or 2-3/4″ from the door edge to the centre of the cross bore. The latch goes in before the outside lever, because the lever's spindle and posts pass through the latch housing. The inside lever goes on over them, then the through-bolts pull the two sides together.

    Door (wood) and jamb (see-through) with its stopSteel trim, strike and screws; brass latch boltRed: the inside lever's push-button lockGreen ring: a spot the part can go now (red: not yet)A cylindrical lever lockset: 2-1/8″ cross bore, 1″ edge bore, an adjustable 2-3/8″/2-3/4″ latch, a strike in the jamb. The latch bevel faces the stop so the closing door pushes it in; the strike's lip guides it and its hole lets it spring back out. Follow the lockset maker's instructions and template.