CAPTIONS are a very effective way of explaining to your reader the contents the object placed in your document. If your document contains a lot of visual elements, then captions not only explain their existence, but also provide a logical flow to your text.

You can either add captions manually by using the text boxes feature of Word, or you can automate the task. To automatically add captions to images in MS Word 2007, carry out the following steps:

Open the desired document. Go to 'References' tab.
Click the 'Insert Caption' option appearing under the 'Captions' group.
Click the 'AutoCaption' button in the 'Caption' dialog box.
Select the 'Microsoft Word Picture' in the 'AutoCaption' dialog box.
Under the 'Options' section, set the 'Use label' value at 'Figure' and the 'Position' value at 'Below Item'.

Click 'OK' to add captions to your images. Add text after the automatically generated caption. To automatically add captions to images in MS Word 2003, carry out the following steps:

Open the desired document.
Go to 'Insert | Reference | Caption tab.
Click the 'AutoCaption' button in the 'Caption' dialog box.
Select the 'Microsoft Word Picture' in the 'AutoCaption' dialog box.
Under the 'Options' section, set the 'Use label' value at 'Figure' and the 'Position' value at 'Below Item'.

Click 'OK' to add captions to your images. Add text after the automatically generated caption.