I should probably mention that scalar UDFs do come with a considerable health warning and can cause performance issues depending upon how you use them.
Here's an example though.
CREATE FUNCTION dbo.Funname ( @param INT )
RETURNS INT
WITH RETURNS NULL ON NULL INPUT
AS
BEGIN
RETURN (SELECT number FROM master.dbo.spt_values WHERE number < @param)
END
In the above example I didn't use a variable as it is redundant. The version with variable is
BEGIN
DECLARE @Result int
SET @Result = (SELECT number FROM master.dbo.spt_values WHERE number < @param)
RETURN @Result
END
For both of the above you would need to be sure the Query returned at most one row to avoid an error at runtime. For example
select dbo.Funname(-1)
Returns -32768
select dbo.Funname(0)
Returns error "Subquery returned more than 1 value."
An alternative syntax would be
BEGIN
DECLARE @Result int
SELECT @Result = number FROM master.dbo.spt_values WHERE number < @param
RETURN @Result
END
This would no longer raise the error if the subquery returned more than one value but you would just end up with an arbitrary result with no warning - which is worse.
Following Comments I think this is what you need
CREATE FUNCTION dbo.getcustgrade(@custid CHAR(200))
RETURNS INT
WITH RETURNS NULL ON NULL INPUT
AS
BEGIN
RETURN
( SELECT [cust grade]
FROM ( SELECT customerid,
DENSE_RANK() OVER (ORDER BY COUNT(*) DESC) AS [cust grade]
FROM Orders
GROUP BY CustomerID
)
d
WHERE customerid = @custid
)
END