Not able to add policies in SAM template

Question

I am working on SAM template for publishing my Application in AWS Serverless repository. But when I try to add policies for my lambda it shows me error: Invalid Serverless Application Specification document. Number of errors found: 1. Errors: Resource with id [SyncPostDataFromSfLambda] is invalid. Only policy templates are supported in 'Policies' property.

Below is the example for my SAM template:

{
    "AWSTemplateFormatVersion": "2010-09-09",
    "Transform": "AWS::Serverless-2016-10-31",
    "Description": "Deployment",
    "Resources": {
        "SyncPostDataToSfLambda": {
            "Type": "AWS::Serverless::Function",
            "Properties": {
                "Handler": "index.handler",
                "FunctionName": "myLambdaFunction",
                "CodeUri": "s3 URL",
                "Runtime": "nodejs6.10",
                "MemorySize": 512,
                "Policies": [
                    "AmazonDynamoDBFullAccess"
                ],
                "Events": {
                    "PostResource": {
                        "Type": "Api",
                        "Properties": {
                            "RestApiId": {
                                "Ref": "API"
                            },
                            "Path": "/apipath",
                            "Method": "post"
                        }
                    }
                }
            }
        }
    }
}

Answer 1

As of today (2018-10-09), SAM template already supports inline policy document.

Here is an example:-

Resources:
  SomeFunction:
    Type: AWS::Serverless::Function
    Properties:
      Handler: index.handler
      Runtime: nodejs8.10
      Policies:
      - Statement:
        - Sid: SSMDescribeParametersPolicy
          Effect: Allow
          Action:
          - ssm:DescribeParameters
          Resource: '*'
        - Sid: SSMGetParameterPolicy
          Effect: Allow
          Action:
          - ssm:GetParameters
          - ssm:GetParameter
          Resource: '*'

References:

1. AWS::Serverless::Function's Policies property on AWS SAM Specification
2. Related issue on GitHub

Answer 2

Here's the full list of policy templates from the official repo example.

Transform: AWS::Serverless-2016-10-31
Resources:
  MyFunction:
    Type: 'AWS::Serverless::Function'
    Properties:
      CodeUri: src/
      Handler: index.handler
      Runtime: nodejs4.3
      Policies:

        - SQSPollerPolicy:
            QueueName: name

        - LambdaInvokePolicy:
            FunctionName: name

        - CloudWatchPutMetricPolicy: {}

        - EC2DescribePolicy: {}

        - DynamoDBCrudPolicy:
            TableName: name

        - DynamoDBReadPolicy:
            TableName: name

        - SESSendBouncePolicy:
            IdentityName: name

        - ElasticsearchHttpPostPolicy:
            DomainName: name

        - S3ReadPolicy:
            BucketName: name

        - S3CrudPolicy:
            BucketName: name

        - AMIDescribePolicy: {}

        - CloudFormationDescribeStacksPolicy: {}

        - RekognitionDetectOnlyPolicy: {}

        - RekognitionNoDataAccessPolicy:
            CollectionId: id

        - RekognitionReadPolicy:
            CollectionId: id

        - RekognitionWriteOnlyAccessPolicy:
            CollectionId: id

        - RekognitionLabelsPolicy: {}

        - SQSSendMessagePolicy:
            QueueName: name

        - SNSPublishMessagePolicy:
            TopicName: name

        - VPCAccessPolicy: {}

        - DynamoDBStreamReadPolicy:
            TableName: name
            StreamName: name

        - KinesisStreamReadPolicy:
            StreamName: name

        - SESCrudPolicy:
            IdentityName: name

        - SNSCrudPolicy:
            TopicName: name

        - KinesisCrudPolicy:
            StreamName: name

        - KMSDecryptPolicy:
            KeyId: keyId

        - SESBulkTemplatedCrudPolicy:
            IdentityName: name

        - SESEmailTemplateCrudPolicy: {}

        - FilterLogEventsPolicy:
            LogGroupName: name

        - StepFunctionsExecutionPolicy:
            StateMachineName: name