HEIDENHAIN iTNC 530 (340 49x-03) Pilot - Manual (Page 14)

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Tool compensation
The TNC compensates the length L and radius R of the tool during
machining.
Length compensation
Beginning of effect:
8 Tool movement in the spindle axis
End of effect:
8 Tool exchange or tool with the length L=0
Radius compensation
Beginning of effect:
8 Tool movement in the working plane with RR or RL
End of effect:
8 Execution of a positioning block with R0
Working without radius compensation (e.g. drilling):
8 Execution of a positioning block with R0
R
R
R0
RL