Check out example codes for "set parameter sql server". It will help you in understanding the concepts better.

Code Example 1

USE AdventureWorks2012;  
GO  
-- Passing values as constants.  
EXEC dbo.uspGetWhereUsedProductID 819, '20050225';  
GO  
-- Passing values as variables.  
DECLARE @ProductID int, @CheckDate datetime;  
SET @ProductID = 819;  
SET @CheckDate = '20050225';  
EXEC dbo.uspGetWhereUsedProductID @ProductID, @CheckDate;  
GO  
-- Try to use a function as a parameter value.  
-- This produces an error message.  
EXEC dbo.uspGetWhereUsedProductID 819, GETDATE();  
GO  
-- Passing the function value as a variable.  
DECLARE @CheckDate datetime;  
SET @CheckDate = GETDATE();  
EXEC dbo.uspGetWhereUsedProductID 819, @CheckDate;  
GO

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