How to get Magento to update order status when PayPal returns IPN message?

Posted by Nick on Pro Webmasters See other posts from Pro Webmasters or by Nick
Published on 2011-09-19T21:23:21Z Indexed on 2012/04/05 11:43 UTC
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magento

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paypal

When someone checks out in Magento with PayPal, and PayPal flags their payment for review, Magento correctly sets the order status to "Payment Review". However, if after a day or two PayPal decides the order is OK, it sends an IPN message to Magento with the proper payment status of "Pending" and pending reason of "authorization".

I can see this IPN message in Magento's paypal logs (and can simulate it with the sandbox), however, when Magento receives this message it does not update its order status. Why not and how can this be fixed? I am using Magento 1.5.1.0.

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