What kind of scope are you using?
Most eastern-european scopes (those designed for use with the siderail mount) have both a coarse adjustment and a fine adjustment. The fine adjustment is what you get when you turn the knob, and offers a limited amount of correction. The coarse adjustment usually involves loosening the set screws on the knob and rotating the whole assembly to put everything into rough alignment first.
I bought a POSP for my SAR-1 some years ago and it was WAY low, well outside of the normal adjustment range. The instructions that came with the scope showed how to coarse-adjust it. My current AK sight (Kobra) is set up the same way.
Now, if you are using a siderail mount with a picatinny rail on top, and have a U.S. made scope sitting on the top rail, you may have to go the shim route. Raising the back of the scope would be what you'd need to do. (Right now, with the scope pointed straight at the bullseye, the rifle is pointing down below the bullseye. You need to raise the back of the scope to make it point at the same place the barrel is pointing.)
