diff --git a/erpnext/selling/report/territory_wise_sales/test_territory_wise_sales.py b/erpnext/selling/report/territory_wise_sales/test_territory_wise_sales.py
new file mode 100644
index 00000000000..f2b81bfb633
--- /dev/null
+++ b/erpnext/selling/report/territory_wise_sales/test_territory_wise_sales.py
@@ -0,0 +1,59 @@
+# Copyright (c) 2026, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+
+import frappe
+
+from erpnext.selling.doctype.quotation.test_quotation import make_quotation
+from erpnext.selling.report.territory_wise_sales.territory_wise_sales import execute
+from erpnext.tests.utils import ERPNextTestSuite
+
+TERRITORY = "_Test Territory"
+
+
+class TestTerritoryWiseSales(ERPNextTestSuite):
+	"""The report walks the Opportunity -> Quotation -> Sales Order -> Sales Invoice
+	funnel and totals each stage's amount per territory."""
+
+	def make_opportunity(self, amount=5000):
+		return frappe.get_doc(
+			{
+				"doctype": "Opportunity",
+				"opportunity_from": "Customer",
+				"party_name": "_Test Customer",
+				"territory": TERRITORY,
+				"company": "_Test Company",
+				"currency": "INR",
+				"opportunity_amount": amount,
+				"transaction_date": "2026-06-01",
+			}
+		).insert()
+
+	def make_quotation_for(self, opportunity, qty, rate):
+		qo = make_quotation(item="_Test Item", qty=qty, rate=rate, do_not_save=True)
+		qo.opportunity = opportunity.name
+		qo.insert()
+		qo.submit()
+		return qo
+
+	def amount_for(self, territory, field):
+		for row in execute(frappe._dict({"company": "_Test Company"}))[1]:
+			if row["territory"] == territory:
+				return row[field]
+		return 0
+
+	def test_opportunity_amount_grouped_by_territory(self):
+		before = self.amount_for(TERRITORY, "opportunity_amount")
+		opp = self.make_opportunity(5000)
+		self.assertEqual(opp.territory, TERRITORY)
+
+		after = self.amount_for(TERRITORY, "opportunity_amount")
+		self.assertEqual(after - before, 5000)
+
+	def test_quotation_amount_flows_from_opportunity(self):
+		before = self.amount_for(TERRITORY, "quotation_amount")
+
+		opp = self.make_opportunity()
+		quotation = self.make_quotation_for(opp, qty=2, rate=500)
+
+		after = self.amount_for(TERRITORY, "quotation_amount")
+		self.assertEqual(after - before, quotation.base_grand_total)