diff --git a/db-service/lib/cqn2sql.js b/db-service/lib/cqn2sql.js
index a678b2159..767503aae 100644
--- a/db-service/lib/cqn2sql.js
+++ b/db-service/lib/cqn2sql.js
@@ -1088,7 +1088,7 @@ class CQN2SQLRenderer {
 
     const extractions = this._managed = this.managed(columns.map(c => ({ name: c, sql: `NEW.${this.quote(c)}` })), elements)
     const sql = extractions.length > columns.length
-      ? `SELECT ${extractions.map(c => `${c.insert} AS ${this.quote(c.name)}`)} FROM (${this.SELECT(src)}) AS NEW`
+      ? `SELECT ${extractions.map((c, i) => `${i < columns.length ? c.insert : c.onInsert} AS ${this.quote(c.name)}`)} FROM (${this.SELECT(src)}) AS NEW`
       : this.SELECT(src)
     if (extractions.length > columns.length) columns = this.columns = extractions.map(c => c.name)
     this.sql = `INSERT INTO ${this.quote(entity)}${alias ? ' as ' + this.quote(alias) : ''} (${columns.map(c => this.quote(transitions.mapping.get(c)?.ref?.[0] || c))}) ${sql}`
@@ -1161,12 +1161,12 @@ class CQN2SQLRenderer {
       const extractions = this._managed
       if (this.values) this.values = [] // Clear previously computed values
       const src = this.cqn4sql(UPSERT.from || UPSERT.as)
-      const aliasedQuery = cds.ql.SELECT
-        .columns(src.SELECT.columns
-          .map((c, i) => ({ ref: [this.column_name(c)], as: this.columns[i] }))
-        )
-        .from(src)
-      sql = `SELECT ${extractions.map(c => `${c.upsert}`)} FROM (${this.SELECT(aliasedQuery)}) AS NEW LEFT JOIN ${this.quote(entity)} AS OLD ON ${keyCompare}`
+      const aliasedQuery = `SELECT ${[
+        ...src.SELECT.columns.map((c, i) => this.column_expr({ ref: [this.column_name(c)], as: this.columns[i] })),
+        ...extractions.slice(src.SELECT.columns.length).map(c => `${elements[c.name].key ? c.onInsert : 'NULL'} AS ${this.quote(c.name)}`), // fill in missing default values
+      ]} FROM (${this.SELECT(src)})`
+
+      sql = `SELECT ${extractions.map(c => elements[c.name].key ? `NEW.${this.quote(c.name)}` : c.upsert)} FROM(${aliasedQuery}) AS NEW LEFT JOIN ${this.quote(entity)} AS OLD ON ${keyCompare} `
       if (extractions.length > columns.length) columns = this.columns = extractions.map(c => c.name)
       this.entries = [this.values]
     }
@@ -1574,9 +1574,11 @@ class CQN2SQLRenderer {
 
   managed_extract(name, element, converter) {
     const { UPSERT, INSERT } = this.cqn
-    const extract = !(INSERT?.entries || UPSERT?.entries) && (INSERT?.rows || UPSERT?.rows)
-      ? `value->>${this.string(`$[${this.columns.indexOf(name)}]`)}`
-      : `value->>${this.string(`$.${JSON.stringify(name)}`)}`
+    const extract = (INSERT?.entries || UPSERT?.entries)
+      ? `value->>${this.string(`$.${JSON.stringify(name)}`)}`
+      : (INSERT?.rows || UPSERT?.rows)
+        ? `value->>${this.string(`$[${this.columns.indexOf(name)}]`)}`
+        : `NEW.${this.quote(name)}` // in case of (INSERT?.from || UPSERT?.from)
     const sql = converter?.(extract) || extract
     return { extract, sql }
   }
@@ -1587,7 +1589,9 @@ class CQN2SQLRenderer {
   }
 
   managed_default(name, managed, src) {
-    return `(CASE WHEN json_type(value,${this.managed_extract(name).extract.slice(8)}) IS NULL THEN ${managed} ELSE ${src} END)`
+    const { UPSERT, INSERT } = this.cqn
+    const isJson = INSERT?.entries || UPSERT?.entries || INSERT?.rows || UPSERT?.rows
+    return `(CASE WHEN ${isJson ? `json_type(value,${this.managed_extract(name).extract.slice(8)})` : `NEW.${this.quote(name)}`} IS NULL THEN ${managed} ELSE ${src} END)`
   }
 }
 
diff --git a/hana/lib/HANAService.js b/hana/lib/HANAService.js
index 557e19af1..bee6d7b36 100644
--- a/hana/lib/HANAService.js
+++ b/hana/lib/HANAService.js
@@ -73,8 +73,8 @@ class HANAService extends SQLService {
               try {
                 await require('@sap/cds-mtxs/lib').xt.serviceManager.get(tenant, { disableCache: true, invalidCredentials: credentials, retryUntil: deadline })
               } catch (smErr) {
-                 smErr.cause = err
-                 throw new Error(`Failed connecting to pool - could not get valid credentials from Service Manager`, { cause: smErr })
+                smErr.cause = err
+                throw new Error(`Failed connecting to pool - could not get valid credentials from Service Manager`, { cause: smErr })
               }
               if (Date.now() < deadline) return create(tenant, start)
               else throw new Error(`Pool exceeded for '${tenant}' within ${acquireTimeoutMillis}ms`, { cause: err })
@@ -603,7 +603,7 @@ class HANAService extends SQLService {
               // if (col.ref?.length === 1) { col.ref.unshift(parent.as) }
               if (col.ref?.length > 1) {
                 const colName = this.column_name(col)
-                
+
                 const isSource = from => {
                   if (from.as === col.ref[0]) return true
                   return from.args?.some(a => {
@@ -893,12 +893,12 @@ SELECT ${mixing} FROM JSON_TABLE(SRC.JSON, '$' COLUMNS(${extraction}) ERROR ON E
       } else {
         const src = this.cqn4sql(UPSERT.from || UPSERT.as)
         if (this.values) this.values = []
-        const aliasedQuery = cds.ql.SELECT
-          .columns(src.SELECT.columns
-            .map((c, i) => ({ ref: [this.column_name(c)], as: this.columns[i] }))
-          )
-          .from(src)
-        sql = `SELECT ${mixing} FROM (${this.SELECT(aliasedQuery)}) AS NEW LEFT JOIN ${this.quote(entity)} AS OLD ON ${keyCompare}`
+        const aliasedQuery = `SELECT ${[
+          ...src.SELECT.columns.map((c, i) => this.column_expr({ ref: [this.column_name(c)], as: this.columns[i] })),
+          ...managed.slice(src.SELECT.columns.length).map(c => `${elements[c.name].key ? c.onInsert : 'NULL'} AS ${this.quote(c.name)}`), // fill in missing default values
+        ]} FROM (${this.SELECT(src)})`
+
+        sql = `SELECT ${mixing} FROM (${aliasedQuery}) AS NEW LEFT JOIN ${this.quote(entity)} AS OLD ON ${keyCompare}`
         this.entries = [this.values]
       }
 
@@ -1206,7 +1206,9 @@ SELECT ${mixing} FROM JSON_TABLE(SRC.JSON, '$' COLUMNS(${extraction}) ERROR ON E
     }
 
     managed_default(name, managed, src) {
-      return `(CASE WHEN ${this.quote('$.' + name)} IS NULL THEN ${managed} ELSE ${src} END)`
+      const { UPSERT, INSERT } = this.cqn
+      const isJson = INSERT?.entries || UPSERT?.entries || INSERT?.rows || UPSERT?.rows
+      return `(CASE WHEN ${isJson ? this.quote('$.' + name) : `NEW.${this.quote(name)}`} IS NULL THEN ${managed} ELSE ${src} END)`
     }
 
     render_with() {
diff --git a/postgres/lib/PostgresService.js b/postgres/lib/PostgresService.js
index d25a408cd..b41ba5bfa 100644
--- a/postgres/lib/PostgresService.js
+++ b/postgres/lib/PostgresService.js
@@ -459,7 +459,9 @@ GROUP BY k
     }
 
     managed_default(name, managed, src) {
-      return `(CASE WHEN json_typeof(value->${this.managed_extract(name).extract.slice(8)}) IS NULL THEN ${managed} ELSE ${src} END)`
+      const { UPSERT, INSERT } = this.cqn
+      const isJson = INSERT?.entries || UPSERT?.entries || INSERT?.rows || UPSERT?.rows
+      return `(CASE WHEN ${isJson ? `json_typeof(value->${this.managed_extract(name).extract.slice(8)})` : `NEW.${this.quote(name)}`} IS NULL THEN ${managed} ELSE ${src} END)`
     }
 
     param({ ref }) {
diff --git a/sqlite/test/general/managed.test.js b/sqlite/test/general/managed.test.js
index 5a3f2d959..76fb6b096 100644
--- a/sqlite/test/general/managed.test.js
+++ b/sqlite/test/general/managed.test.js
@@ -125,6 +125,26 @@ describe('Managed thingies', () => {
     expect(updateTime).to.be.greaterThan(insertTime)
   })
 
+  test('INSERT.into().from(SELECT) applies managed and default values', async () => {
+    await INSERT.into('test.foo').entries({ ID: 99, defaultValue: 50 })
+
+    // INSERT.from(SELECT) with only a subset of columns
+    await INSERT.into('test.foo').from(
+      cds.ql`SELECT ID + 900 as ID from test.foo where ID = 99`,
+    )
+
+    const result = await SELECT.from('test.foo').where({ ID: 999 })
+    expect(result).to.have.length(1)
+    expect(result[0]).to.containSubset({
+      ID: 999,
+      defaultValue: 100, // default applied, not carried over from source
+      createdBy: 'anonymous',
+      modifiedBy: 'anonymous',
+    })
+    expect(result[0].createdAt).to.be.a('string')
+    expect(result[0].modifiedAt).to.be.a('string')
+  })
+
   test('managed attributes are shared within a transaction', async () => {
     const db = await cds.connect.to('db')
     const tx = db.tx({ user: { id: 'tom' } })
diff --git a/test/compliance/INSERT.test.js b/test/compliance/INSERT.test.js
index dc8aa1923..1ab16c629 100644
--- a/test/compliance/INSERT.test.js
+++ b/test/compliance/INSERT.test.js
@@ -175,8 +175,8 @@ describe('INSERT', () => {
         .from(cds.ql`SELECT id || '-' || default as ID FROM ${keys} WHERE id = ${1}`)
       const select = await SELECT.from(cuid).orderBy('ID')
       expect(select).deep.eq([
-        {ID:'1-defaulted'},
-        {ID:'1-overwritten'},
+        { ID: '1-defaulted' },
+        { ID: '1-overwritten' },
       ])
     })
 
@@ -194,6 +194,49 @@ describe('INSERT', () => {
       const select = await SELECT.from(Alter).where('number = 42')
       expect(select[0]).to.eql({ ID: 1, number: 42, order_ID: null })
     })
+
+    test('defaults', async () => {
+      const { cuid, keys, default: _default } = cds.entities('basic.common')
+
+      // fill other table first
+      const ID = '1234'
+      await cds.run(INSERT([{ ID }]).into(cuid))
+      await INSERT.into(keys).from(cds.ql`SELECT cast(ID as Integer) as id FROM ${cuid} WHERE ID = ${ID}`)
+      await INSERT.into(keys).from(cds.ql`SELECT cast(ID as Integer) as id, 'overwritten' as default FROM ${cuid} WHERE ID = ${ID}`)
+
+      // default key column
+      const select = await SELECT.from(keys).where`id = ${ID}`.orderBy('default')
+      expect(select).deep.eq([
+        { id: 1234, default: 'defaulted', data: null },
+        { id: 1234, default: 'overwritten', data: null },
+      ])
+
+      // default column
+      await INSERT.into(_default).from(cds.ql`SELECT ID FROM ${cuid} WHERE ID = ${ID}`)
+      const defaultInsert = await SELECT.from(_default).where`ID = ${ID}`
+      expect(defaultInsert).deep.eq([{
+        ID,
+        uuidDflt: '00000000-0000-0000-4000-000000000000',
+        bool: false,
+        integer8: 8,
+        integer16: 9,
+        integer32: 10,
+        integer64: '11',
+        double: 1.1,
+        float: '1.1',
+        decimal: '1.1111',
+        string: 'default',
+        char: 'd',
+        short: 'default',
+        medium: 'default',
+        large: 'default',
+        date: '1970-01-01',
+        date_lit: '2021-05-05',
+        time: '01:02:03',
+        dateTime: '1970-01-01T01:02:03Z',
+        timestamp: '1970-01-01T01:02:03.123Z',
+      }])
+    })
   })
 
   test('InsertResult', async () => {
diff --git a/test/compliance/UPSERT.test.js b/test/compliance/UPSERT.test.js
index fb53640f7..2218b1092 100644
--- a/test/compliance/UPSERT.test.js
+++ b/test/compliance/UPSERT.test.js
@@ -88,6 +88,42 @@ describe('UPSERT', () => {
         { ID: '1-overwritten' },
       ])
     })
+
+    test('defaults', async () => {
+      const { cuid, keys, default: _default } = cds.entities('basic.common')
+
+      const ID = '1234'
+      // fill other table first
+      await cds.run(UPSERT([{ ID }]).into(cuid))
+
+      // default key column
+      await UPSERT.into(keys).from(cds.ql`SELECT cast(ID as Integer) as id FROM ${cuid} WHERE ID = ${ID}`)
+      await UPSERT.into(keys).from(cds.ql`SELECT cast(ID as Integer) as id, 'overwritten' as default FROM ${cuid} WHERE ID = ${ID}`)
+
+      const keysAfter = await SELECT.from(keys).where`id = ${ID}`.orderBy('default')
+      expect(keysAfter).deep.eq([
+        { id: 1234, default: 'defaulted', data: null },
+        { id: 1234, default: 'overwritten', data: null },
+      ])
+
+      // default column
+      const unchangedQuery = UPSERT.into(_default).from(cds.ql`SELECT ID FROM ${cuid} WHERE ID = ${ID}`)
+      const changedQuery = UPSERT.into(_default).from(cds.ql`SELECT ID, 'c' as char FROM ${cuid} WHERE ID = ${ID}`)
+
+      await unchangedQuery.clone()
+      const defaultInsert = await SELECT.from(_default).where`ID = ${ID}`
+      await unchangedQuery.clone()
+      const defaultUnchanged = await SELECT.from(_default).where`ID = ${ID}`
+      expect(defaultUnchanged).deep.eq(defaultInsert)
+
+      await changedQuery.clone()
+      const defaultChanged = await SELECT.from(_default).where`ID = ${ID}`
+      expect(defaultChanged).property(0).property('char').eq('c')
+
+      await unchangedQuery.clone()
+      const defaultUnchangedChanged = await SELECT.from(_default).where`ID = ${ID}`
+      expect(defaultChanged).deep.eq(defaultUnchangedChanged)
+    })
   })
 
   test('affected row', async () => {