I wouldn't use the Adjust button to correct this as it will eliminate the history of the real payment under the vendor history.  I would post a manual reversal of the $100 on the date it was cashed.

Go into the Payments module and select the Vendor, the date of the cashing of the cheque and use AdjChq# as the cheque source (replace Chq# with the real cheque number.  Then select the Include Fully Paid transactions button on the toolbar (and on the Payments menu).

Go to the invoice(s) that were paid and enter -100 in the amount column.  Check the journal entry on the Report menu to make sure it puts the $100 back in the bank.  It will leave that $100 still owing to the vendor.

Some people may recommend reversing the amount with the full $153 then posting the $53 payment.  It's your choice on how you want the reports to look.  I don't think that reflects reality so I would post the $100 reversal.

Thank you very much! :)

Hi Betty you should get a hold of the bank as it sounds like this is there error and they need to correct their posting to your bank account.  The vendor would of got the full $153.00 i'm assuming, just the bank posted it wrong. 

Thanks for reminding Marj.

you may wan to get a statement from the vendor first to make sure that they received the full funds and not partial payment. then onus falls on either cashing bank or receiving bank that someone at either place made the mistake and not between you and vendor.  as a back up I would ask vendor to check their bank statement also to make sure they received full funds of cheque 

Thank you DEWDL. We've requested a statement to be sent by the vendor.