We implemented Recurring Orders last year for memberships, and are working though issues as membership renewals are processing.  The Checkout action sets the order status to "Incomplete", then requires responseCode = 1 and transactionType = 2 in order to set the order to "Completed". 

For received recurring order failed payments, the order status reflects "Incomplete" as it should, however the item within the recurring order reflects "Ordered" and all the run actions (store order email notification, subscription user roles, etc.) that occur with the purchase of this item are implemented.  It appears the item is ordered prior to the checkout process (which ensured payment is made prior to placing the order).  It appears that the "Place order" is out of sequence with the checkout process of paying / receiving confirmation of payment accepted prior.  

Is this process configurable by the administrator, and where do we begin?  Thank you!

<xsl:transform version="2.0" xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
  <xsl:template match="/">
    <!-- Set order status to "incomplete"; then "completed", payment status "paid", if payment is received by verifying sales payment response code is 1-->
    <out>
      <setData>
        <salesOrder>
          <status>7</status>
        </salesOrder>
       <xsl:if test="sum(/in/salesOrder/salesPayments/salesPayment[responseCode = 1 and transactionType = 2]/amount) &gt;= /in/salesOrder/totalAmount">
          <salesOrder>
            <status>4</status>
            <salesPaymentStatus>2</salesPaymentStatus>
          </salesOrder>
        </xsl:if>
      </setData>
    </out>
  </xsl:template>
</xsl:transform>