Refunds at Authorize.net are showing as income payments on contribution.

We have had a couple of occurrences of this issue show up for a client. A member pays for their membership via the online contribution page. They then want to get a refund for the payment, so they contact the client and the client first goes into Authorize.net's admin interface to process the refund. Since I had assumed that refunds wouldn't get reported back to Civi, I then had the client go into Civi and record a refund on the contribution with the transaction information from Authorize.

It seems though that the refund is sending an IPN notification with a refund.create event, but the issue is that this refund.create event is actually creating a new payment for the refunded amount instead of a refund credit for the amount.

Here is an example json output for the payments on a contribution with this issue. You can see the 12220 would be the initial payment by the member/contact. Then payment 12221 was the refund.create IPN notification from Authorize that should have been a refund but was being recorded as an income payment. Lastly payment 12222 is the actual manual refund the client created in Civi with the information from Authorize refund transaction.

{

    "is_error": 0,
    "version": 3,
    "count": 3,
    "values": [
        {
            "id": "12220",
            "to_financial_account_id": "7",
            "trxn_date": "2022-01-29 14:00:52",
            "total_amount": "350.00",
            "fee_amount": "0.00",
            "net_amount": "350.00",
            "currency": "USD",
            "is_payment": "1",
            "trxn_id": "xxxxxxxxx",
            "status_id": "1",
            "payment_processor_id": "1",
            "payment_instrument_id": "1",
            "contribution_id": "41115"
        },
        {
            "id": "12221",
            "from_financial_account_id": "7",
            "to_financial_account_id": "7",
            "trxn_date": "2022-01-31 10:53:06",
            "total_amount": "350.00",
            "fee_amount": "0.00",
            "net_amount": "350.00",
            "currency": "USD",
            "is_payment": "1",
            "status_id": "1",
            "payment_processor_id": "1",
            "payment_instrument_id": "1",
            "contribution_id": "41115"
        },
        {
            "id": "12222",
            "from_financial_account_id": "7",
            "to_financial_account_id": "12",
            "trxn_date": "2022-01-31 13:51:00",
            "total_amount": "-350.00",
            "currency": "USD",
            "is_payment": "1",
            "trxn_id": "xxxxxxxxxx",
            "status_id": "7",
            "payment_instrument_id": "1",
            "pan_truncation": "2007",
            "contribution_id": "41115"
        }
    ]
}

Looking at the system logs for IPN notification, that created the 12221 payment, you can see the following being sent from Authorize and saved in the logs:

{
    "id": "1177",
    "message": "payment_notification processor_id=1",
    "context": "{\"notificationId\":\"xxxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxxx\",\"eventType\":\"net.authorize.payment.refund.created\",\"eventDate\":\"2022-01-31T16:52:45.0332498Z\",\"webhookId\":\"xxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxx\",\"payload\":{\"responseCode\":1,\"avsResponse\":\"P\",\"authAmount\":350,\"invoiceNumber\":\"00000000000000\",\"entityName\":\"transaction\",\"id\":\"00000000000000\"}}",
    "level": "alert",
    "timestamp": "2022-01-31 10:53:05",
    "hostname": "xxx.xxx.xxx.xxx"
}

The payLoad is stating the refund.create event, but it isn't being recorded as a refund but another income payment as seen in 12221.

Not sure if the amount should be a negative amount instead of positive when calling the payment->create api method? (mjwpayment->create_payment)