Passing Temporary  Table as parameter to SQL Function

1. Define your own Table Type
2. Declare your table Variable of your own table type
3. Insert the Record
4. Pass the table variable name as the parameter to function

Define your own Table Type

CREATE TYPE TableType AS TABLE (LocationName VARCHAR(50))
GO 

Declare your table Variable of your own table type 

DECLARE @myTable TableType

Insert the Record
INSERT INTO @myTable(LocationName) VALUES('aaa')

SELECT * FROM @myTable

Pass the table variable name as the parameter to function 

CREATE FUNCTION Example( @TableName TableType READONLY)
RETURNS VARCHAR(50)
AS
BEGIN
    DECLARE @name VARCHAR(50)

    SELECT TOP 1 @name = LocationName FROM @TableName
    RETURN @nameEND

For More Reference Click Below Link

http://stackoverflow.com/questions/1609115/pass-table-as-parameter-into-sql-server-udf