The user is assigned to the territory as Employee Responsible. The Employee Responsible is determined from this territory when creating a transaction. But the transaction generates error “Employee Responsible *** has failed territory validation” (CRM_ORDER_TERR 002).
The reason you get this error is because you have not disabled territory validation of partner function employee responsible. It is unnecessary to activate territory check for partner function employee responisble. Territoy validation is used to check if account/product is valid for the given territory. It is checked against territory relationships (crmd_terr_accrel, crmd_terr_prdrel). If employee is assigned to a territory or not is not relevant for the territory validation.
The resolution is the check flag of Terr Check Not Required for partner function 00000014 Employee Responsible in the affected partner determination procedure.
Please see online documentation under http://help.sap.com/saphelp_crm70/helpdata/EN/d5/f80a7a1ee64aaeb744bdd2f867449e/content.htm?frameset=/EN/b6/030950eec841d889b8ba2a78a1fcd4/frameset.htm
1934969 – Employee Responsible *** has failed territory validation (CRM_ORDER_TERR 002)