Dividends paid/payable are indeed a distribution of retained earnings and s/be in the Equity section.
MikeinBC's suggestion is indeed sensible and what should happen in my view (to separately identify dividends paid/payable simply and easily)...alas you can't currently do it! (I have posted feedback to QuickBooks asking why and if they will revise software to accommodate and await a response)....see below:
Following error messages come up when I try to set-up as (1) New A/C and (2) sub-A/C
(1)
Account
Something’s not quite right
There can be only one account of detail type Retained Earnings.
Account Type Equity
*Detail Type Retained Earnings
QuickBooks Online Plus adds this account when you create your company.
Retained earnings tracks net income from previous financial years.
QuickBooks Online Plus automatically transfers your profit (or loss) to Retained earnings at the end of each financial year.
*Name
Dividends Paid & Payable
Description
Dividends Paid & Payable
Is sub-account
Enter parent account
Default VAT Code
No VAT
Balance
(2)
Account
Something’s not quite right
Accounts with detail type Retained Earnings cannot have sub-accounts.
Account Type Equity
*Detail Type Retained Earnings
QuickBooks Online Plus adds this account when you create your company.
Retained earnings tracks net income from previous financial years.
QuickBooks Online Plus automatically transfers your profit (or loss) to Retained earnings at the end of each financial year.
*Name
Dividends Paid & Payable
Description
Dividends Paid & Payable
Is sub-account
Retained Earnings
Default VAT Code
No VAT
Balance
