Functional Specification TemplateFunctional Specification Template
Requirements - Request for Price Quote

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Functional Specification

A functional specification can substantially simplify and streamline the process of application development. Intended to describe how an IT application or a piece of software works, it provides a ready reference for software developers and aligns large and disparate development teams to a single goal. In the process, it provides technical clarity on how the different components of a particular applications are to be designed, implemented and integrated with each other, and (if used correctly) significantly reduces the time and cost component of any development exercise.

In general terms, the functional specification states what the proposed system is to do, whereas design is how the system is to be constructed to meet the functional specification. However in writing it, some consideration of design issues must take place, to ensure a realistic system is specified.

The functional specification should be clear, consistent, precise and unambiguous. The user requirement may mean that the user interface should be included in this document for some projects, whereas for others this will be done at the design stage either within a document or developed via a prototype.

It is important that there is a draft functional specification before the design stage on any project is started and that the functional specification is agreed and issued normally within a week of the final quality review. There must be a milestone on the project plan for the issue of the functional specification. The functional specification must be kept up-to-date, as this is the communication with the world outside the development staff.

Request for Quotation (RFQ)

A Functional Speification is the first step in the Request for Quotation Process (RFQ). To receive correct quotes, RFQs often include the specifications of the items/services to make sure all the suppliers are bidding on the same item/service. Logically, the more detailed the specifications, the more accurate the quote will be and comparable to the other suppliers. Another reason for being detailed in sending out an RFQ is that the specifications could be used as legal binding documentation for the suppliers.

Functional Specification Template

This Functional Specification Template as been designed by one of Industry's most experienced application consulting firms. It has been used in the creation of over 500 Request for Price Quotation documents for the clients of Janco Associates.

The template has been updated to reflect requirements for WEB, PCI-DSS, HIPAA, Sarbanes-Oxley, and ISO requirements. The PDF version can be supplied to vendors and they can use the Adobe typewriter input directly on the PDF document. In that way all of the responses provided by vendors will be in the same format and more easily compared.

The Template is 66 pages in length and contains the following sections:

  • Enterprise Profile
  • Requirement Overview
  • Transaction Requirements
  • Vendor Profile
  • Sizing and Costs
    1. Hardware Configuration
    2. Software Requirements
  • Product and Services Profile
    1. General
    2. Technical
  • Purchasing
    1. Major Features and Functions
    2. Documents and Reports to be Produced
  • Accounts Payable
    1. Major Features and Functions
    2. Documents and Reports to be Produced
  • Receiving
    1. Major Features and Functions
    2. Documents and Reports to be Produced
  • Inventory
    1. Major Features and Functions
    2. Documents and Reports to be Produced
  • Sales and Marketing
    1. Major Features and Functions
    2. Documents and Reports to be Produced
  • Confidentiality Agreement