Zero return the B Axis, set the Grid Offset (press B + F4 while on the parameter page in service mode.)
Handle jog the rotary until the arrow on the pallet is pointing towards the spindle.
Mount a mag base with indicator on the spindle. Jog the X Axis and indicate the face of the pallet. Handle jog the rotary until the face is parallel to X Axis is within 0.002".
While on the parameter page in service mode, press B + F2 to set the TC Offset.
Command a pallet change to verify that the B and Z axis TC Offsets are set correctly.