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upsert based on a related field



i have 3 custom object trnasaction, item and devices


Transaction has a field called asset , devices has a field called item and item has a field called assetno

i am trying to read through data from trnasaction and upsert into devices with assetno as external id.


My question is since devices has a lookup to item and item has asset no, can we relate transaction.asset and devices.item.assetno


I dont know if i am making any sense.  basically what i want is upsert into devices using asset as external id. Should devices have a field called asset to work or can it check with item.asset?