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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.
A functional specification (FS) is a formal document that details all features and specifications of a certain software product. During the requirements phase of the software development process, a functional specification is one of the key documents created by a manager or lead developer. Hence, the functional specification should contain enough detail for the developers to begin the design of the project and thereafter to begin coding.