Difference between stored procedure and functions in SQL Server

Store Procedure	Function
S.P need not be return a value	Functions MUST return a value
S.P can be called independently using exec keyword whereas	Function is called using SELECT statements.
S.P can be used for performing business logic	Functions are used for computations
Can be used EXEC inside an S.P	EXEC command can't be used inside a Function
S.P takes IN and OUT parameters.	Function parameters are always IN, no OUT is possible
Transaction related statement can be handled in S.P	Can't be handled in function.
XML parameters passed in S.P	Can’t pass XML Parameters
S.P can affect the state of the database by using insert, delete, update and create operations.	Functions cannot affect the state of the database which means we cannot perform insert, delete, update
Parsed and Compiled during design time itself	Compiled and executed during run time

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