Hello Candace,
When you enter the credit card charge, use Accounts Payable as the account in the Expense tab and put the Vendor's name in the Customer/Job field as well as in the Purchased From field.
This creates a credit which you can apply to whichever bill you want to in the Pay bills window. The credit does not automatically pop up. When you click on a bill to pay you can see below if there are credits to apply. Click on Set Credits, and choose which credit to apply to that bill.
