Let $k$ be an algebraically closed field. If $S$ is a positively graded $k$-algebra which is finitely generated by $S_1$ over $S_0 = k$ then quasi-coherent sheaves on $\operatorname{Proj}S$ are equivalent to graded $S$-modules modulo the finite $k$-dimensional modules.
I have a positively graded finitely generated $k$-algebra whose generators are not necessarily in degree $1$. Does the statement above still hold? I've been googling around and every reference assumes that the ring is generated by $S_1$ but makes no mention of why. Is it just for convenience or is there a known counterexample?
If it fails I assume the functor that takes a graded module $M$ to it's sheaf $\widetilde M$ is at least still exact. Is it maybe still faithful? Or even full? Any references would be greatly appreciated.