diff --git a/config/tests/servicemapping/servicemapping_test.go b/config/tests/servicemapping/servicemapping_test.go
index 8afb1c10fe..729fe9d810 100644
--- a/config/tests/servicemapping/servicemapping_test.go
+++ b/config/tests/servicemapping/servicemapping_test.go
@@ -1267,6 +1267,11 @@ func TestStorageVersionIsSetAndValidIFFV1alpha1ToV1beta1IsSet(t *testing.T) {
 				continue
 			}
 			if isV1alpha1ToV1beta1 {
+				// if this is a direct resource, the storage version is defiend
+				// in the kubebuilder tooling
+				if r.Direct {
+					continue
+				}
 				if hasStorageVersion {
 					t.Errorf("Resource config %v has `v1alpha1ToV1beta1: "+
 						"true` but doesn't have a valid `storageVersion`: "+
diff --git a/pkg/k8s/allowlist_test.go b/pkg/k8s/allowlist_test.go
index 33b54251c9..c5df02a4b3 100644
--- a/pkg/k8s/allowlist_test.go
+++ b/pkg/k8s/allowlist_test.go
@@ -145,6 +145,11 @@ func TestOutputOnlyFieldsAreUnderObservedState(t *testing.T) {
 					}
 					requiredFieldsMap := map[string]bool{"observedGeneration": true, "conditions": true}
 					optionalFieldsMap := map[string]bool{"observedState": true}
+
+					// for direct resources, we will use the "externalRef" prop under the "status"
+					// to track the KCC full resource ID
+					optionalFieldsMap["externalRef"] = true
+
 					for k, _ := range statusProp.Properties {
 						foundInMaps := false
 						if _, ok := requiredFieldsMap[k]; ok {
@@ -156,7 +161,7 @@ func TestOutputOnlyFieldsAreUnderObservedState(t *testing.T) {
 							delete(optionalFieldsMap, k)
 						}
 						if !foundInMaps {
-							t.Errorf("CRD has non-boilerplate field %v under 'status'", k)
+							t.Errorf("CRD has non-boilerplate field '%v' under 'status'", k)
 						}
 					}