UDF have its own advantage and usage but in this article we will see the limitation of UDF. Things UDF can not do and why Stored Procedure are considered as more flexible then UDFs. Stored Procedure are more flexibility then User Defined Functions(UDF).
As I said earlier this article is written to show Limitations of UDF. I use UDF for many reasons, the main reason I use it I can do repetitive task in SELECT statement as well as modularizing my frequently used code.
Reference : Pinal Dave (http://blog.SQLAuthority.com) , BOL and few other articles (Reference Missing)