If you assign artwork to a pattern piece in a SmartDesign template, and there are pattern pieces that (a) are related to the original pattern piece; and (b) are a different size from the original, you need to set up a reference point. The most common use case is when assigning artwork to a sleeve. For example, you can have a logo assigned to a short sleeve, then you select a long sleeve option. The reference point ensures the artwork displays in a consistent location, regardless of different sizes of sleeves.
To set up a reference point:
On the Main toolbar, click Arrange.
In the 2D window, do a marquee selection of the relevant pattern pieces.
Go to the Context view and at the top, click the appropriate alignment icon.
In general it is recommended to align centrally.
The artwork now has a consistent reference point. For example, if the artwork were placed 5cm from the related (stitched) edge on the original core garment pattern piece, it maintains that distance on other sized pattern pieces.
You can adjust the reference point by different alignments of the pattern pieces. You may need to experiment to get the best effect.