Overview:

When running the territory rules for a particular node in Salesforce, accounts are not getting assigned even though they match the Territory Rule criteria.  

Root Cause:

The lower level Territory is inheriting the Territory Rules of a higher level Territory.  Identify the Territory by checking the Inherited Account Assignment Rules section for the Territory that the rule is run on.  This information is found under Setup --> Manage Territories Territory Hierarchy --> [Territory]

Solution:

Disable (uncheck) the Apply to child territories checkbox on the rule for the higher level Territory.  This is also found under Setup --> Manage Territories Territory Hierarchy --> [Territory].  

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Related Documentation:

Salesforce Help Documentation: Territory Management 

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