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The functional requirements document (FRD) is a formal statement of an applicationâs functional requirements. It serves the same purpose as a contract. The developers agree to provide the capabilities specified. The client agrees to find the product satisfactory if it provides the capabilities specified in the FRD.
The functional design phase provides a translation between the requirements analysis and the detail design. In a software development project, the functional design focuses on the general definition of the whole system or application. The FDS specifies the logical flow of the system, its inputs and outputs, its data organization, the applicable business and processing rules, and how it should appear to users.