As an instant example:
A function that returns a table:
=> create or replace function testf(x integer)
returns table(a integer, b integer)
language sql
as $function$
select * from (values(1,2)) as foo(a,b)
$function$;
Calling it so it returns a record (or whatever you call it):
=> select testf(3);
testf
-------
(1,2)
Calling it so it returns a table (good):
=> select * from testf(3);
a | b
---+---
1 | 2
But how do I call it so the parameters come from a query?
=> select s.n, testf(s.n) from (select 3 as n union select 4) s;
n | testf
---+-------
3 | (1,2)
4 | (1,2) <-- not a table (or row with column names)
=> select * from testf(s.n) from (select 3 as n) s;
ERROR: syntax error at or near "from" LINE 1: select * from testf(s.n) from (select 3 as n) s;