Have a read through the 'Marching to the sound of the guns' section of the
Combat Explained page of the AGE-Wiki linked here. That should clear up any questions of how it works.
Why it works the way it does has more to do with 'game design' than anything else. From my understanding, it is greatly the answer to the question of how the game should represent command decisions below the scale of the game. Since there is no interaction with orders issued before turn execution has started during the execution, one would be left with order for a period of two weeks which, as soon as the enemy goes into motion, become obsolete.
Think of the adjacent regions occupied by corps of the same army as representing the sphere of influence the army would actually have during the two week period of turn execution. It's not the most elegant solution, but it more or less expresses armies following each other and exerting resistance to maneuvers against each other.