Yes otherwise the pickup won't fit in!
Now to get the pickup in approximately the correct location, turn the engine over until the #1 cylinder is at top dead center (on the firing cycle, both valves should be closed)
Now move the crank back to about 10° before top dead center. Now put the sensor in, with the center of the sensor lined up with one of the slots on the disk, and tighten it all up. you will be close enough to the correct timing for the engine to start, and then you can set the timing with a timing light.
Make sure that the disk is well centered or the timing will not be the same on all four cylinders.