Yes, What version of NX are you using?
This is a two step process.
1. on the tool you need to define a tracking point in this case at the tool diameter.
2. On your operations you need to activate the tracking point.
It depends on the version of nx where it is located and even if it is available.
IN NX4 it is only available for Planar Profile operations
In NX5 & 6 it is on the cutter comp or More tab - non-cutting moves.
Send me a PM and I can e-mail you an example part