Taking a penalty from an incorrect position.

The skill of the umpire plays a crucial role in this scenario and players and umpires must work together. If each adheres to their respective roles and responsibilities then this situation should not arise.
The umpire must clearly state and indicate where the sanction is to be taken.
The player must take up the correct position. It is a matter of discretion for the umpire to apply common sense and good judgment.
The umpire may:
(a)        allow play to continue if it’s ‘near’ the correct position. Umpires should not be over fussy or pedantic. It is also very helpful to add – the correct third/inside the goal circle/wing area, etc. when setting the penalty.
(b)        ask for penalty pass or free pass to be taken correctly if there is genuine confusion or uncertainty. If an umpire’s call is not clearly heard a player may ask the umpire to repeat the infringement penalised or seek clarification of where a sanction is to be taken from.
In cases where there is genuine confusion or uncertainty – examples: because of language difficulties or in playing venues where noise is a contributing factor, the umpire may allow the penalty pass or free pass to be retaken.
(c)        award a free pass for a minor infringement
The normal sanction for a minor infringement should be applied – free pass to the opposing team to be taken where the infringement occurred.
(d )       Penalise for unfair play – Delaying play
When a player takes the penalty pass or free pass from an incorrect position, the umpire may invoke the Game Management procedure for unfair play – delaying play, and award a Penalty pass which is advanced (unless the non-offending team is disadvantaged) and the player is cautioned.

Procedure for delaying play – ask for Time / State the infringement+sanction/ Restart hand signal.
What the umpire states will be appropriate to how the situation is handled. This is part of the game management skill of an umpire and those who are very clear and precise with their instructions and develop good rapport with players usually don’t have this issue.
The terminology to be used can be –  ‘Incorrect position’ or ‘Incorrectly taken’