Excellent answer, I would add...

A functional Spec details the functions of the application. This use of the word 'function' is not a programming term, but a term relating to the business.

A functional spec is still able to be read by a non-technical business person and will show them some more detail than the requirements document but definately not into the nitty-gritty of a technical spec.

From a functional spec, you will be able to complete a detailed estimate based on the time it would take to build each 'function' (screen, report etc).

Steve

>Seems this Client has done a few oursourcing projects before.
>
>The functional specs generally include but are not limited to:
>
>* Inputs - (Screens, Controls, Messages that an end-user users to add, delete or change data)
>* Outputs - (Screens, Reports, Graphs that the program generates)
>* Inquiries - Direct search for Data
>
>Then from there you may also have to explain Security measures you place on each of the above, etc etc etc...
>
>Rapid Development from Microsoft Press (ISBN: 1-55615-900-5) Covers it pretty
>good as well as a quick search on the web for Functional Specs produced some
>good results through Lycos.
>
>>Hi all,
>>I have a client who has turned out to be a great stickler for detail and every thing being proper.
>>Could any body tell me what all should I include in the Functional Specs Document? Or point me to a site which has a detail about these things.
>>
>>Thanks in Advance
>>
>>Abdul Ahad Khan