diff --git a/.github/codecov.yaml b/.github/codecov.yaml
index 4531f88c8..eed6165a0 100644
--- a/.github/codecov.yaml
+++ b/.github/codecov.yaml
@@ -11,11 +11,15 @@ codecov:
 comment:
   layout: "header, diff, flags, components, files"
 
+ignore:
+  - api/external/** #  ignoring external vendor code
+
 flag_management:
   individual_flags:
     - name: unit
       paths:
         - pkg/**
+        - api/**
       carryforward: true
     - name: integration
       paths:
@@ -24,6 +28,10 @@ flag_management:
 
 component_management:
   individual_components:
+    - component_id: api-v1beta1
+      name: api/v1beta1
+      paths:
+        - api/v1beta1
     - component_id: common
       name: pkg/common (u)
       paths:
@@ -48,3 +56,4 @@ component_management:
       name: controllers (i)
       paths:
         - controllers
+
diff --git a/Makefile b/Makefile
index a630da369..f6491ae2c 100644
--- a/Makefile
+++ b/Makefile
@@ -84,8 +84,8 @@ IMG ?= $(IMAGE_TAG_BASE):$(IMAGE_TAG)
 ENVTEST_K8S_VERSION = 1.22
 
 # Directories containing unit & integration test packages
-UNIT_DIRS := pkg/common pkg/istio pkg/log pkg/reconcilers pkg/rlptools
-INTEGRATION_DIRS := controllers
+UNIT_DIRS := ./pkg/... ./api/...
+INTEGRATION_DIRS := ./controllers...
 
 # Get the currently used golang install path (in GOPATH/bin, unless GOBIN is set)
 ifeq (,$(shell go env GOBIN))