Coolant is always pushed into the block by the pump, hot water (like hot air) rises - so the top of the engine is the hottest point, flow TO the pump and into the block come from the bottom of the radiator (the coolest point)
850 uses a different temp sender to a 127 (didn't you have a 100GL block?) Temp sender on an 850/600 has a hole thru the centre, so water flows thru it and into the banjo two way sender fitting, being pulled back into the pump - so that the pump isn't "dead heading" when the thermostat is closed, as this can lead to isolated hot spots in the system / cavitation at the pump.
You said in another post the engine came set up with a 127 type water pump, does it look like this one?
https://www.ebay.com.au/itm/332016045391 as this is the water pump style used on 127 and A112, three bolt unique shape mount at the block, no provision for an engine driven cooling fan.
CW rotation pump with a 4 bolt (same pattern as 850 903 coupe) style comes from a Seat 133, these do have provision for an engine driven cooling fan and looks like this
https://www.ebay.com.au/itm/274109146953 disregard the sellers mention of this being the pump to use with A112 engine into 850, that's incorrect
I'm guessing the distributor drive spur gear of the engine you purchased matched the 600 type, with the correct helical cut for CW rotation of the engine?
SteveC