Territory Management 
Territory management is a tool that enables you to structure and organize your territories according to criteria of your choice. You do this using the territory hierarchy.
The territory hierarchy is linked to the organizational model via the position of the employee responsible. While the organizational model reflects the internal view of your organization, the territory hierarchy reflects the market view.
Changes to the territory hierarchy usually occur more frequently than changes to the organizational model. The customer base can increase or decrease, and territories must be re-sized or reallocated to accommodate this, to ensure that a sales representative has the appropriate workload.
You have made the settings in Customizing for Customer Relationship Management by choosing .
If you have existing territories in an external planning tool, you have imported them to SAP CRM in Customizing for Customer Relationship Management by choosing . Once you have imported the territories, you can maintain them in SAP CRM.
With territory management you can:
Define territories
Create or modify a territory hierarchy
Assign employees to territories