Collector assigned at the Profile Class level vs. using the Territory Assignments

 We are on 11.5.8 and assign collectors at the profile class.  We are going to be going live with Advance Collections 12.1.1 in July '10 and are wanting to utilitize the Territory Assignment at bill to level for the collectors instead.  We have set up the territories in R12 but we are not seeing that the bill to deliquencies are assigning by State as we had hoped. 

Has anyone done this or experienced the same issue that we are?

Any input is greatly appreciated.

Thanks.

Candi