To cut a groove with fixed tooling you can:
'Form' the groove using the tool shape, using Move menu commands.
'Generate' the groove, where the groove does not
match the tool shape.
To generate the groove you first rough the groove. You can use the
Rough Groove cycle to cut using the
end of the tool (plunging the tool along its axis) or the Rough
Side Groove cycle to cut with the side of the tool (move the tool
sideways). (You could also use the Rough Turn cycle)
You then finish the groove using use the Finish
Groove or Finish Side Groove
cycle (or perhaps the Finish Turn cycle).
You can also make grooves using driven tooling in Rotary mode. For more details, see Milling in Rotary Mode.