Select the Part Edge Output checkbox to enable part edge compensation. This option is similar to setting Cutter Compensation to Part/Edge in a 2D contouring operation. When checked, the part profile is output rather than the tool radius offset.
When producing a part-edge toolpath, the system offsets for the tool radius then offsets that motion back toward the part profile. This results in a toolpath that is fully gouge checked.
Example
Imagine you select the following part geometry.

Part Edge Output On
The tool path of the Finish
Walls contour follows the selected geometry, and creates arcs equal to
the tool radius.

Use the Part Edge Compensation Arc Adjustment setting under the
Defaults tab to change the size of the arc. For
example, if you use a 0.5 inch endmill, the above example creates 0.25 inch
arcs. If you set Part Edge Compensation Arc Adjustment
to 0.1, the above example adds 0.1 to 0.25 to create 0.35 inch arcs.
Part Edge Output Off
