The issue of voltage variations caused by integration of renewables has been addressed in this paper through distributed management of Microgrids (MGs). The distribution network (DN) takes the network losses and voltage quality as objectives, an alternating direction method of multipliers (ADMM) with adaptive penalty modulation has been proposed to realize distributed optimization with improved convergence. On the basis of satisfying the optimization target on the system level, the individual MG manages the controllable resources inside the MG to minimize the operating cost on the lower level. The feasibility and effectiveness of the proposed method has been demonstrated on a modified IEEE 33-bus system.