If Pay Value is set on an element entry, does it bypass ALL payroll processing?

Summary:

Entering a value against Pay Value appears to skip all processing

Content (required):

When you enter a Pay Value against an element entry, it appears to skip all fast formula and status processing rules and just drops that Pay Value into the run results. There are no entries in the debug log, it is like the fast formula doesn't get called at all. No mention of a skip formula or anything, the element entry isn't even mentioned.

Is this right?

The problem I have is that I wanted this element to send an indirect result to another element. In normal processing that works fine, but when a value is entered against Pay Value, the indirection doesn't work.