diff --git a/fe/src/test/java/org/apache/impala/analysis/AnalyzeDDLTest.java b/fe/src/test/java/org/apache/impala/analysis/AnalyzeDDLTest.java
index 7b2709a9e..b5b65fe23 100644
--- a/fe/src/test/java/org/apache/impala/analysis/AnalyzeDDLTest.java
+++ b/fe/src/test/java/org/apache/impala/analysis/AnalyzeDDLTest.java
@@ -2036,10 +2036,10 @@ public class AnalyzeDDLTest extends FrontendTestBase {
 
     // Inferring primitive and complex types
     AnalyzesOk("create table if not exists newtbl_DNE like orc " +
-        "'/test-warehouse/alltypestiny_orc_def/year=2009/month=1/" +
+        "'/test-warehouse/managed/alltypestiny_orc_def/year=2009/month=1/" +
         "base_0000001/bucket_00000_0'");
     AnalyzesOk("create table if not exists newtbl_DNE like orc " +
-        "'/test-warehouse/complextypestbl_orc_def/base_0000001/bucket_00000_0'");
+        "'/test-warehouse/managed/complextypestbl_orc_def/base_0000001/bucket_00000_0'");
 
     // check invalid paths
     AnalysisError("create table if not exists functional.zipcode_incomes like ORC " +
diff --git a/testdata/bin/generate-schema-statements.py b/testdata/bin/generate-schema-statements.py
index 811349866..590445c70 100755
--- a/testdata/bin/generate-schema-statements.py
+++ b/testdata/bin/generate-schema-statements.py
@@ -315,13 +315,6 @@ def build_table_template(file_format, columns, partition_columns, row_format,
     # Kudu's test tables are managed.
     external = ""
 
-  # ORC tables are full ACID by default.
-  if (HIVE_MAJOR_VERSION == 3 and
-      file_format == 'orc' and
-      'transactional' not in tblproperties):
-    external = ""
-    tblproperties['transactional'] = 'true'
-
   all_tblproperties = []
   for key, value in tblproperties.iteritems():
     all_tblproperties.append("'{0}' = '{1}'".format(key, value))
@@ -655,15 +648,6 @@ def generate_statements(output_name, test_vectors, sections,
       force_reload = options.force_reload or (partition_columns and not alter) or \
           file_format == 'kudu'
 
-      hdfs_location = '{0}.{1}{2}'.format(db_name, table_name, db_suffix)
-      # hdfs file names for functional datasets are stored
-      # directly under /test-warehouse
-      # TODO: We should not need to specify the hdfs file path in the schema file.
-      # This needs to be done programmatically.
-      if data_set == 'functional':
-        hdfs_location = hdfs_location.split('.')[-1]
-      data_path = os.path.join(options.hive_warehouse_dir, hdfs_location)
-
       # Empty tables (tables with no "LOAD" sections) are assumed to be used for insert
       # testing. Since Impala currently only supports inserting into TEXT, PARQUET and
       # HBASE we need to create these tables with a supported insert format.
@@ -677,6 +661,23 @@ def generate_statements(output_name, test_vectors, sections,
           create_file_format = 'text'
 
       tblproperties = parse_table_properties(create_file_format, table_properties)
+      # ORC tables are full ACID by default.
+      if (HIVE_MAJOR_VERSION == 3 and
+          create_file_format == 'orc' and
+          'transactional' not in tblproperties):
+        tblproperties['transactional'] = 'true'
+
+      hdfs_location = '{0}.{1}{2}'.format(db_name, table_name, db_suffix)
+      # hdfs file names for functional datasets are stored
+      # directly under /test-warehouse
+      # TODO: We should not need to specify the hdfs file path in the schema file.
+      # This needs to be done programmatically.
+      if data_set == 'functional':
+        hdfs_location = hdfs_location.split('.')[-1]
+      # Transactional tables need to be put under the 'managed' directory.
+      if is_transactional(tblproperties):
+        hdfs_location = os.path.join('managed', hdfs_location)
+      data_path = os.path.join(options.hive_warehouse_dir, hdfs_location)
 
       output = impala_create
       if create_hive or file_format == 'hbase':
@@ -684,8 +685,6 @@ def generate_statements(output_name, test_vectors, sections,
       elif codec == 'lzo':
         # Impala CREATE TABLE doesn't allow INPUTFORMAT.
         output = hive_output
-      elif is_transactional(tblproperties):
-        output = hive_output
 
       # TODO: Currently, Kudu does not support partitioned tables via Impala.
       # If a CREATE_KUDU section was provided, assume it handles the partition columns
diff --git a/testdata/datasets/functional/functional_schema_template.sql b/testdata/datasets/functional/functional_schema_template.sql
index 6cf0b4b28..e3dc3dae7 100644
--- a/testdata/datasets/functional/functional_schema_template.sql
+++ b/testdata/datasets/functional/functional_schema_template.sql
@@ -332,6 +332,8 @@ LOCATION '{hdfs_location}';
 ALTER TABLE {table_name}_tmp ADD IF NOT EXISTS PARTITION (year=2009, month=1);
 ALTER TABLE {table_name}_tmp ADD IF NOT EXISTS PARTITION (year=2009, month=2);
 ALTER TABLE {table_name}_tmp ADD IF NOT EXISTS PARTITION (year=2009, month=3);
+---- TABLE_PROPERTIES
+transactional=false
 ---- DEPENDENT_LOAD
 USE {db_name}{db_suffix};
 -- Step 4: Stream the data from tmp text table to desired format tmp table
@@ -458,6 +460,8 @@ USE {db_name}{db_suffix};
 ALTER TABLE {table_name}_tmp ADD IF NOT EXISTS PARTITION (year=2009, month=1);
 ALTER TABLE {table_name}_tmp ADD IF NOT EXISTS PARTITION (year=2009, month=2);
 ALTER TABLE {table_name}_tmp ADD IF NOT EXISTS PARTITION (year=2009, month=3);
+---- TABLE_PROPERTIES
+transactional=false
 ---- DEPENDENT_LOAD
 USE {db_name}{db_suffix};
 -- Step 4: Stream the data from tmp text table to desired format tmp table
@@ -1526,6 +1530,8 @@ CREATE EXTERNAL TABLE IF NOT EXISTS {db_name}{db_suffix}.{table_name} (
 ROW FORMAT DELIMITED FIELDS TERMINATED BY ','
 STORED AS {file_format}
 LOCATION '{hdfs_location}';
+---- TABLE_PROPERTIES
+transactional=false
 ---- DEPENDENT_LOAD
 INSERT OVERWRITE TABLE {db_name}{db_suffix}.{table_name} SELECT * FROM {db_name}.{table_name};
 ---- LOAD
diff --git a/testdata/workloads/functional-query/queries/QueryTest/create-table-like-file-orc.test b/testdata/workloads/functional-query/queries/QueryTest/create-table-like-file-orc.test
index 5bbd7c156..3d3629972 100644
--- a/testdata/workloads/functional-query/queries/QueryTest/create-table-like-file-orc.test
+++ b/testdata/workloads/functional-query/queries/QueryTest/create-table-like-file-orc.test
@@ -23,7 +23,7 @@ STRING, STRING, STRING
 ====
 ---- QUERY
 create table $DATABASE.temp_chars_table like ORC
-'$FILESYSTEM_PREFIX/test-warehouse/chars_tiny_orc_def/base_0000001/bucket_00000_0'
+'$NAMENODE/$MANAGED_WAREHOUSE_DIR/chars_tiny_orc_def/base_0000001/bucket_00000_0'
 ---- RESULTS
 'Table has been created.'
 ====
@@ -115,9 +115,8 @@ STRING, STRING, STRING
 ====
 ---- QUERY
 create external table transactional_complextypes_clone like ORC
-'$FILESYSTEM_PREFIX/test-warehouse/complextypestbl_orc_def/base_0000001/bucket_00000_0'
-stored as orc
-location '$FILESYSTEM_PREFIX/test-warehouse/complextypestbl_orc_def/';
+'$NAMENODE/$MANAGED_WAREHOUSE_DIR/complextypestbl_orc_def/base_0000001/bucket_00000_0'
+stored as orc;
 ---- RESULTS
 'Table has been created.'
 ====
@@ -133,19 +132,3 @@ describe transactional_complextypes_clone
 ---- TYPES
 STRING, STRING, STRING
 ====
----- QUERY
-select originaltransaction, rowid, `row`.id from transactional_complextypes_clone;
----- LABELS
-originaltransaction, rowid, row.id
----- RESULTS
-1,0,8
-1,0,1
-1,1,2
-1,2,3
-1,3,4
-1,4,5
-1,5,6
-1,6,7
----- TYPES
-BIGINT, BIGINT, BIGINT
-====