Is it OK to track commissions in Google Sheets?

Yes, to about fifty distributors. The spreadsheet should have version history enabled, formula audit logs enabled, and a backup routine (a copy saved to Drive weekly, or a Sheets-to-database backup script if you're technical). Never share write access; calculate in one tab and paste values into a separate read-only tab that distributors can view. Above fifty distributors, the formulas tend to grow faster than they can be audited reliably, and the manual approach starts producing the kind of small errors that compound into real distributor trust impact. The graduation conversation should start at fifty, not at the moment something breaks.