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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.
In software engineering (and systems engineering), a functional requirement defines a function of a system and its components. typical functional requirement will contain a unique name and number, a brief summary, and a rationale. This information is used to help the reader understand why the requirement is needed, and to track the requirement through the development of the system.