A functional specification is the set of documentation that describes the requested behavior of a system or product to be made. The documentation typically describes what is needed by the system user as well as requested properties of inputs and outputs.
It can also be make by creating a flow chart that will describe step by step the process to be follow.
Here a simple example of the chart: http://upload.wikimedia.org/wikipedia/commons/a/a2/Specification_and_Levels_of_Development.jpg
Specification is a document that clearly and accurately describes the essential technical requirements for items, materials, or services including the procedures by which it can be determined that the requirements have been met. Specifications help avoid duplication and inconsistencies, allow for accurate estimates of necessary work and resources, act as a negotiation and reference document for engineering changes, provide documentation of configuration, and allow for consistent communication among those responsible.
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