There is no reason not to use citric acid or sodium citrate and sugar in the same batch.
Yes, you add the sugar and water to the oils. If you add it to the lye/water, it gets really hot and can caramelize the sugar, leading to brown soap. All of the oils and lye/water and sugar/water are going to get mixed together, anyway, you just minimize your chances of caramelizing the sugar by adding it to the oils.
Thanks Susie. That's fine explanation and you have certainly cleared up the ambiguity, Thanks once again