How does "Derive Territory" action in Account screen work?

Hey all,
Does anyone have idea on how the action "Derive Territory" in Account screen work?
Is it based on Rules(in the Decision table) of already completed "Realignment Runs"? I observed that it is picking up based on State of Account.
If yes, is there any way that I can configure this Decision table apart from Realignment Run creation screen?
How is this intelligence to pick a Territory based on Geographic location included here? Is it picking from same Decision table? Coz we don't define these geographic positions while defining a territory. We just give names. Am I going wrong anywhere here?
Vatsav

Thanks for the tip Janina but it didn't help me unfortunately. From the screenshot below (taken from page# 234), I can go with the assumption that I already have but I need a confirmation on that.

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