Kmymoney separates entries into either income or expense. But how can cash flow reports handle an item that fits neither?

Case in point. You have charged numerous purchases onto a credit card. Those expenses are properly categorized into your monthly cash flow report. Then the credit card bill arrives. Paying the bill is not a new expense but Kmymoney has no option for a neutral category.

Is there a work around for this I haven't found?

Paying your credit card is a transfer, because it goes from an asset account (cash or bank account) to a liability (credit card)