This discussion explores the concept of 'overdraft variance' (OD variance) within an overdraft account. It suggests that OD variance can have both positive and negative impacts on your cash flow, akin to favourable or adverse outcomes. The core idea is to understand how changes in your overdraft balance affect your overall financial position.
It looks like some fancy terminology because variances have adverse and favourable outcomes. That is negative impact on cash. Naturally old balance plus new balance will increase of.